Ethereum (Symbol: ETHBTC) could surge by another 50 percent as its price tests a long-term weekly resistance level.
That is, according to Teddy Cleps, a crypto-focused market analyst-cum-daytrader. He spotted ETHBTC inching towards a price ceiling that had historically capped the pair from extending its upside moves. The level also served as strong support during ETHBTC’s correction in 2018.
Ethereum price chart by TradingView.com showing ETHBTC eyeing a breakout move.
Mr. Cleps recalled the level for its tendency to flip Ethereum’s medium-term bias. He noted that breaking above it would kickstart a new buying spree. Thereon, ETHBTC could rise by as much as 50 percent, a move that sets its upside target around 0.055 BTC.
“Clear this weekly resistance and it will be a smooth ride for another 50 percent,” he said.
Ethereum-Dollar Outlook
Studying the same theory on Ethereum’s dollar-focused chart also showed a similar scenario. In it, the ETHUSD exchange rate closed above its long-term horizontal resistance level as of this week. The pair is now eyeing a breakout confirmation, followed by a rally towards its next upside target at $528.
The levels came to light after putting the Ethereum price moves on Fibonacci retracement levels between a swing low of $7.10 and a high of $1,373. Old fractals showed ETHUSD testing the redded level (as shown in the chart below) as resistance on four occasions. It had only one breakout that led the pair to its historic high of $1,424.
Ethereum price chart by TradingView.com showing ETHUSD targeting levels above $500.
This week was Ethereum’s second successful attempt ever to close above the redded resistance level. The cryptocurrency’s jump meanwhile came on strong fundamentals led