The breakout of the crypto loan currency Bitcoin (BTC) above 20,000 US dollars also caused prices to rise significantly on the overall market. While Ethereum (ETH) and Litecoin (LTC), newly included in the analysis, have already generated new highs for the year, Ripple’s price (XRP) is still struggling with the consequences of the airdrop in the previous week.
Ethereum can also gain significantly in the wake of the bullish outbreak of the crypto key currency Bitcoin and generate a new annual high of 678 US dollars. Should Bitcoin not develop a double top in the range of 23,800 US dollars, Ethereum will again target price targets above 700 US dollars. However, if the price falls back below the low of 622 US dollars, a possible double top should not be ignored.
Bullish variant (Ethereum)
The correction in the previous week only lasted briefly. After the ether price regained the EMA20 (red), the price rose back to its high for the year of 637 US dollars. In the course of the new Bitcoin all-time high, Ethereum also generated a new annual high of 674 US dollars. Although the price corrected back to 625 US dollars for a short time, it is currently rising again northwards and is quoted at 655 US dollars. If the breakout above the new annual high and the 78 Fibonacci retracement at 678 US dollars is also overcome, a breakthrough to 720 US dollars is likely.
However, this initial price target is only to be viewed as an intermediate target on the way towards the strong resistance area between $ 803 (Fibonacci extension 361) and $ 842. If the bulls manage to heave the ether price sustainably over this resist zone in the course of a further increase in the overall market, an increase to the 925 US dollar and a maximum of 1002 US dollar cannot be ruled out. The 461 Fibonacci retracement is to be seen as a medium-term price target for the next 4 weeks
Bearish variant (Ethereum)
If, however, the ether price bounces off significantly to the south and also falls back below the 590 US dollar (EMA20), the area around 550 US dollars moves again into the focus of investors. If this support is sustainably undershot and the last low at USD 531 does not stop there, the correction threatens to expand towards USD 515. If the bulls cannot stabilize Ethereum at this support, a price decline to the multiple support at 489 US dollars should be planned. This is where the last significant high from September 2020 takes place. If this area is also broken dynamically, a decision will be made on the course direction for the coming weeks. The 50s Fibonacci retracement, the EMA100 (yellow) and the green uptrend line run in the area of 460 US dollars.
If this multiple support does not hold, the correction gains momentum and should initially push the price to around $ 440. The breakout level from November 2020 can be found here. If this support is also given up, an extension of the correction to the next support levels at US $ 420 and US $ 409 is likely. A direct drop in the price to 383 US dollars is also conceivable. The EMA200 (blue) runs here. In addition, this price mark was often relevant in the past. However, as long as the ether price continues to trade above the 531 US dollar, price targets on the upside are to be favored.