Ethereum is on rocket-fuel reading from the performance in the daily chart. Trackers indicate that ETH is outperforming Bitcoin by the most since launch, following the sharp gains of the past three days.
Ethereum Bulls are Rampant
After bottoming up last week, ETH prices are now up 20 percent to spot rates.
Meanwhile, Ethereum buyers are confident of moon swing above $4.8k to new all-time highs in a buy trend continuation pattern.
On the ETHBTC chart, already ETH bulls are retesting a multi-week resistance line and may break to the upside, further pointing to the critical role Ethereum plays in the expanding ecosystem.
From the daily chart, ETH bulls are squarely in control, and the path of least resistance is northwards.
It is despite fears of the end of last week following the dump of November 26, which briefly placed ETH prices below a critical support trend line—and just beyond the ascending wedge.
Fundamental and Sentimental Analysis of ETHUSDT
Fundamentally, Ethereum is rock solid, being the home of DeFi and NFTs.
Even with the rise of scalable and low-fee ledgers, the allegiance amongst developers and users in combination with the Ethereum brand makes the network’s role significant.
Competing networks, as such, have to connect to the Ethereum network while enthusiasts have to contend with high Gas fees.
Ethereum sentimental analysis of the Fear and Greed Index reveals that traders are neutral. It is even with losses of last week that saw ETHUSDT retest $4k.
At around 47, the reading suggests confidence, the basic building block for another leg up above $4.8k.
Ethereum Price Analysis
From the ETHUSDT price chart in the daily chart, it is evident that buyers are in the driving seat.
The reversal from the psychological round number at $4k and the complete reversal of November 26 highs with increasing trading volumes show that buyers are confident.
While risk-off traders can load the dips as long as ETHUSDT trend above $4.5k and target $4.8k, risk-averse traders can wait for a clean close above all-time highs before committing.
The rapidity of the uptrend, if ETH bulls take over, depends on trading volumes. The higher the participating trading volumes, the stronger the upthrust—meaning the pace to new territory would also be stronger and resilient to selling pressure.
Based on the Fibonacci extension level of the H1 2021 trade range, the next possible target is at $6.6k, the 1.618 Fibonacci extension level. Meanwhile, losses below $4.5k and the support trend line of the ascending wedge cancels the uptrend.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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