Ethereum Price Hits $420, Opening the Door to $650
Ethereum’s ether has surpassed the previous all-time high at $404.99 to reach $420 on November 23, opening the door to $651.62. The bullish trend follows on from Devcon three and the release of the code for Casper.
The daily chart below for the Kraken exchange displays the bullish run ether experienced during 2017. The Fibonacci tool is outlined for the rise from $5.92 toward the end of 2016 to the previous all-time high at $404.99 in June 2017, two important fractal levels. Following the rise above $400 for the first time, ETH-USD tested the Fibonacci supports at $252.55 and $158.36, before reversing higher, trading between $200-$400 and eventually breaking the $400 handle again on November 23.
The Fibonacci extension level at $651.62 now serves as a target for buyers, with the break of the fractal resistance expected to lead to an influx of buyers. Therefore, we anticipate a drift toward $650 in the upcoming weeks, as the market continues the long-term uptrend. Selling pressure is expected around the 161.8 percent extension level, so we could either take profits from long positions triggered near $404.99 or set limit sell orders just below $651.62.
The monthly chart below shows how the Fibonacci levels are aligned with the most recent fractals, with November set to post the highest ever monthly close for ETH-USD. The price action on the Kraken exchange tested the 50 percent retracement level at $205.46 during July and now looks ready to continue toward $650.
The daily chart below for the Bitstamp exchange shows that more and more traders are entering the ether market and becoming interested in this cryptoasset. For instance, notice the volume has been increasing since the altcoin was added in August. Notice that November 23’s trading session saw the secondest highest volume since ether was added, suggesting the cryptoasset is building a base for further gains.
The chart below shows some medium-term resistances at $421.87, $471.86, and $502.76. Immediate support is found at $371.88.
The 4-hour chart indicates equilibrium for ether around $340-$350 at the time of writing, rising to around $380 during the trading sessions for November 27. We should look for the market to return to equilibrium and test the Ichimoku cloud as support to get in on the ongoing uptrend. The market has tested the $421.87 resistance, and a reversal looks to be forming, with the most recent candlestick displaying a long upper wick (suggesting buyers are weak at the time of writing).