- ETH on the verge of the massive rally, analysts predict.
- The initial technical barrier is created by a psychological barrier of $200.00.
Ethereum (ETH) has been gaining ground for three days in a row. The coin hit an intraday high at $173.58, but retreated to $172.16 by the time of writing. Despite the downside correction, ETH/USD is still nearly 3% higher on a day-to-day basis. Ethereum’s market capitalization has increased to $18.9 billion, while an average daily trading volume is registered at $11 billion.
Notably, only 23% of Ethereum accounts are in the money at the current price, intotheblock statistics show. It means that the price should go much higher before ETH investors are able to book some profits.
Accumulation phase gives way to massive growth
In the past months cryptocurrency industry participants have been accumulating some major coins, including Ethereum, which creates a perfect precondition for a strong bullish cycle that may kick in in the nearest future, a popular crypto Twitter analyst, Bitcoin Jack (@BTC_JackSparrow) predicts. He believes that many major coins are ready to rise against Bitcoin.
He explains in the recent tweet:
The alt market vs $BTC is looking more and more like it will finally pop and confirm a 6+ month accumulation. Could be a cyclic bottom. That means having the right alts is something you should plan for. Many majors look primed like $XMR $ZEC $ETH $LTC.
If his assumptions are correct, then the recent price recovery may transform into a full-fledged bullish trend.
ETH/USD: technical picture
From the technical point of view, ETH/USD support is created by SMA200 daily on approach to $157.00. The short0term trend remains bullish as long as the coin stays above this price. However, if it is broken, the sell-off may gain traction and push the price towards psychological barrier of $150.00 followed by $144.60 (SMA50 daily).
On the upside, a sharp move above the recent high of $173.58 will open up the way towards $180, and, ultimately, to $200.00. Once it is cleared, the upside momentum will gaine traction with the next focus on SMA200 weekly (currently at $236.00). The price has been moving below this level since August 2019.
ETH/USD daily chart