- Using Ethereum’s price action history, analysts plot trend lines to identify next support/resistance levels and potential cycle top.
- A move up that coincides with ETH’s previous cycle top puts the target at $19,518.
- Experts believe that of the top 10 cryptocurrencies, ETH is close to price discovery.
- Bitcoin and Ethereum funding rates are far from excessive.
Ethereum has posted better than 900% gains over the past year, offering traders and holders a high risk-adjusted return compared to other altcoins. Ethereum’s historical price action has paved the way for a run to $19,000.
Ethereum proponents predict potential cycle top
Analysts have used Ethereum’s historical price action to plot logarithmic regression trend lines and have identified support and resistance levels for ETH prices. Support and resistance are considered key levels to identify the change in the direction of an altcoin’s price trend.
An analyst may point to a specific price or area and interpret the degree of significance of a level, setting a price target for the altcoin. Logarithmic Regression Rainbow is an indicator that uses Ethereum’s historical price action. Experts plot logarithmic regression trend lines to identify support and resistance.
The longer Ethereum takes to climb to the next resistance level, the higher the potential market cycle top.
At $3,730, ETH had the potential to test resistance at $6,433. A move up to the previous cycle top would imply that the next target for ETH is $19,518.
Logarithmic Regression Rainbow for Ethereum.
Ethereum is the closest to price discovery among the top ten altcoins by market capitalization. In contrast to the general sentiment among market participants that argue the cryptocurrency market has witnessed high Bitcoin and Ethereum funding rates, funding rates remain relatively low for the two assets.
Funding rates are the periodic payments to long and short traders, and they are based on the difference between the asset’s price on perpetual contracts and spot markets. High funding rates coincide with market euphoria and cycle tops.
Once Ethereum enters price discovery mode, funding rates are expected to increase.
Ashwath Balakrishnan, a research associate at Delphi Digital, commented on the state of Ethereum’s funding rates in a recent tweet.
People are saying the market is gassed based on $BTC and $ETH funding rates recently
— Ashwath Balakrishnan (@ashwathbk) October 18, 2021
Yes, funding is high compared to a week ago. Care to zoom out?
Funding can go bonkers once we hit uncharted territory pic.twitter.com/x97tdaeQnn
FXStreet analysts have evaluated the ETH price trend and predicted that the altcoin is ready to break out. Analysts have set a target of $5,200 for ETH price.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.