Ethereum price could reach $ 500 for the first time since 2018 if these factors are surpassed
As reported in recent times, the Ethereum network seems to be overloaded, leading to record high transaction fees. Meanwhile, Ethereum price also exhibits a high degree of volatility. Surprisingly, Ethereum made a new high at $ 495 by the end of August, after which the price started dropping more than 30%, hitting $ 308.
This drop has caused the cryptocurrency market to slide as well as the price of Bitcoin plunging to $ 10,000.
The best Ethereum price should hold firmly at the support of $ 300
Ether has been attempting to continue its massive rally with a fresh breakout above $ 440 in previous weeks. However, as the chart shows, the breakout didn’t demonstrate strength, causing a massive sell-off around September 1.
ETH/USDT 1-day chart | Source: TradingView
Critical support levels were found at $ 360 – $ 380 but failed to hold after many trials. This breakdown led to the next level of support, with the price sliding from $ 360 to $ 300.
When a breakdown or breakout occurs, further resistance and support levels can be calculated from historical price action.
The chart shows that $ 300 is a necessary level, although $ 280 and $ 245 are also significant levels to watch. The previous support at $ 360 – $ 380 is now clearly identified as resistance, and ETH needs to break it down for momentum to continue.
ETH/USD 1-week chart | Source: TradingView
Ether surged from $ 220 to $ 495 in a matter of weeks, and therefore, a correction towards $ 300 should not come as a surprise.
The weekly chart shows several important indicators for the next upside momentum. At first, the resistance zone at $ 450 failed to break overnight, and that is perfectly normal. More importantly, however, the price of Ether is operating above the 100-week and 200-week moving averages for the first time since June 2018.
That is a significant bullish signal for the market. As long as Ether stays above these MAs, the bearish momentum will be seen as a “buy the dip” opportunity.
The key to keeping the downtrend is the green zone around these MAs. To continue climbing higher, the trend needs to include higher highs and higher lows. Ether made higher lows at $ 450 and is in the process of finding higher lows.
If the green zone holds, leading to a period of consolidation, the next target for Ether price could become $ 800 in the next wave of impulse.
ETH/BTC 1-day chart | Source: TradingView
The rejection is evident at the next high. And from then on, a period of consolidation is most likely to happen and be completely healthy.
The one-year cumulative range has increased, but there is no retesting, at least not until this point. In an uptrend market, the majority of the previous levels are continually tested to confirm support. In other words, buyers are confirming that they care about the final resistance level.
This will be a very healthy occurrence in bull market formation. But once the levels are not retested, and the price continues to rise, negative movements can begin to happen. At this point, the market is not in that phase. And what we need to do is still important to observe the chart and find the right entry points.
You can see the ETH price here.