A confluence of bullish fundamental and technical indicators sees Ethereum rallying upward towards $500 in the fourth quarter.
The second-largest blockchain asset by market capitalization has rallied by more than 200 percent in 2020, with its price trading just shy of $490 in early September. Nevertheless, its uptrend paused as traders migrated to Bitcoin, the flagship cryptocurrency that earlier gained entry into the investment/service portfolios of significant corporations (Square, MicroStrategy, PayPal, etc).
As Bitcoin’s dominance surged, Ethereum extended its downside correction, falling to as low as $313 in a late September trading session. It is in a slow and steady rebound ever since, marginalized by Bitcoin’s growing hegemony on the cryptocurrency market.
But it could still hit $500 as the Bitcoin uptrend comes on the verge of exhaustion. At least three factors – both technical and fundamental – points to a rally ahead for Ethereum. They are mentioned as follows.
#1 ETH/BTC Support
A slowdown in Ethereum’s dollar-based uptrend finds headwinds in the ETH/BTC chart. The pair, which pits Ethereum directly against Bitcoin, is trading lower since August 31. As of Thursday, it was down by more than 32 percent from its YTD high of 0.0406 sats.
ETH/BTC formed an intraday low at 0.02738 sats, a level that falls in the trading area that earlier acted as both support and resistance. A pseudonymous daytrader noted that if ETH/BTC holds this “key support level” then it could end up reducing the Bitcoin’s dominance in the cryptocurrency