- Analysts think that Ethereum is primed to press higher despite last night’s $40 drop.
- One analyst noted that Ethereum remains in an extremely advantageous position on a macro time frame.
- He shared a chart showing that ETH is currently sitting above macro supports, meaning it has room to stretch toward $800 and beyond as it continues to hold those technical levels.
Ethereum Could Move Toward $500
Analysts think that Ethereum is primed to press higher despite last night’s $40 drop, which took place in the span of two minutes.
One crypto-asset trader noted that even after the drop yesterday, Ethereum remains in an extremely advantageous position on a macro time frame. As the chart shows, ETH is currently sitting above macro supports, meaning it has room to stretch toward $800 and beyond as it continues to hold those technical levels.
“Has not even started its parabolic run like BTC yet, still huge room for upside over the coming few weeks, also major macro support is just below just limits downside risk. Still incredibly bullish across all timeframes.”
Chart of ETH's price action over the past few years with analysis by crypto trader Cactus (THeCryptoCactus on Twitter). Source: ETHUSD from TradingView.com
Another analyst, one that predicted Bitcoin would hit the $3,000s in 2020 months before it did, also recently shared a chart indicating Ethereum will move higher.
The chart suggests that ETH will soon retest its year-to-date highs at $485-495.
Chart of ETH's price action over the past few years with analysis by crypto trader Cactus (TheCryptoCactus on Twitter). Source: ETHUSD from TradingView.com
Boosting the expectations of a further ETH rally is the expectation that soon enough, Ethereum 2.0 will launch. ETH2 is a fully-fledged upgrade that will overhaul how the blockchain operates to increase transaction efficiency and reduce transaction costs while reducing the energy usage of the blockchain.
Ethereum Foundation researcher Danny Ryan recently commented on the concerns that the ETH2 deposit contract won’t get enough in deposits prior to the launch:
“I personally think that for initial launch, the 100k+ ETH in the contract is sufficient, and that adjusting the threshold down to not leave that ETH in limbo for too long makes sense. Rewards will be very high for these early adopters and the ETH validating will likely grow over time. Planning on adjusting this constant immediately at November 24 or December 1 is a bit aggressive, imo. We don’t know exactly what will happen in the next couple of weeks so we should observe first. On that linked to thread, clients engineering teams seem to want to wait through December, and adjust the constant at the start of January if needbe. This seems reasonable.”
Ethereum could see further gains as ETH is accumulated to be deposited into the ETH2 contract.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from ethusd, ethbtc Analysts Still Expect Ethereum Rally to $500 Despite $40 Flash Drop