Technical Analysis: The chart shows that ETH will continue to witness a bullish market trend
In the last couple of months, the price of Ethereum has grown massively. The second most popular crypto asset, as of press time, sells for $597.42. Considering that the price of Bitcoin had dropped considerably on November 26, it was not totally surprising that the price of Ethereum followed suit.
Then, the price of ETH dropped below the $500 mark and it was hovering over $480. However, there has been a recent rebound which has brought the price of ETH very close to $600. On the 2nd of December, Ethereum sold for as high as $604.93.
The potential launch of Ethereum 2.0 has kept the crypto community agog. ETH 2.0 has given many enthusiasts reasons to keep their belief in the crypto asset. Essentially, the possible launch of this new development has played a role in keeping the price of ETH bullish.
Ethereum price prediction
When the Ethereum 1-Day chart is viewed, it is obvious that there is a resistance level at $636. It can also be found that there is a steady peak in the volatility of the crypto asset on the 26th of November.
This volatility peak coincides with the period when the price of Bitcoin witnessed a drop in value. It also coincides with when there is a high level of trading and of course, when the price of ETH also dropped.
Accordingly, the chart shows that ETH will continue to witness a bullish market trend. And barring any circumstance, one can expect that Ethereum could grow far beyond the $600 mark in days to come.
It should be noted that Historical Volatility on this chart appears to have plateaued.
Ethereum Volume Analysis
Ethereum entered this trading period with a volume trade of 20,222 ETH. The mean of the previous trading period is 79,193 ETH.
All through this period, the trading volume of ETH remained level. But when the price of the asset dropped, the volume of trade witnessed an increase to 65,545 ETH.
Currently, the crypto asset trading volume appears to be settled at 16,077 ETH, and its mean value is at 23,651 ETH.
The indicators of the On Balance Volume (OBV) and Accumulation/Distribution (Acc/Dist) have shown that they both have remained level. When Eth was trading high, the indicators of both showed that they both were trending upward.
Ethereum pricing, looking at the charts, has been relatively stable barring when it price nosedived due to the drop in the price of Bitcoin.
The trading period has shown that ETH has been trading in a narrow band and it probably might have established a new support level for its price. When these factors are considered, one becomes clearer of why the trading volume has been low and stable and aslo why there has been a large reduction in volatility.
With all of these, one thing that is certain is thy Ethereum would break beyond its resistance and sell for $600 and above in the coming days. Not only that, it would not be entirely surprising if the price of the coin goes as high as $700 well into 2021 considering that the wider crypto market keeps looking at BTC which could also sell for an all time high.
If Bitcoin is able to shatter its glass ceiling, other cryptoassets waiting in line could also be considerably expected to have a massive sale too.
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