(DAILY NOTION): Is $2,000 Next for the Ethereum bulls?

Source: Yahoo Finance

After an impressive day yesterday when it recovered from a day’s low of $1,688.36 to a high of $1,833.83, ETH/USD has retraced to $1,751.40 in the early trading hours of Feb 16. At the time of writing, ETH/USD stands at $1,793.45. Ethereum buyers have taken the opportunity of the dip, as evidenced from the rising Relative Strength Index (RSI) which presently stands at 55. Although the price is currently trading below its 50-day Simple Moving Average (SMA), the Moving Average Convergence Divergence (MACD) is indicating a bullish reversal.

Analyst Anil Panchal from FX Street concurs with this, given that ETH/USD is trading above its 10-day Simple Moving Average (SMA) while confined within an ascending trend channel from Jan 19. Key resistances for the bulls lie at $1,820, $1,878, and $1,940. A successful breakthrough past $1,940 would then pave the way for $2,000. Meanwhile, key support levels lie at $1,771, $1,614, and $1,600.

Ethereum continues to receives its share of the cryptocurrency limelight. Analyst Marcel Pechman from Coin Telegraph reported that the 14-day average transactions and transfers are now above $9 billion in daily transactions, and represents a 32% increase from the previous month, data from Coin Metrics show. Pechman believes that this would be able to sustain Ethereum’s price momentum.

Just like many traders are closely watching Bitcoin’s price action towards the $50,000 level, many are also wondering if Ethereum can hit the $2,000 level soon. For comparison purposes, the below chart shows Ethereum’s price movement compared to Bitcoin (Bitcoin price movement is denoted in blue):

Source: Yahoo Finance

It is interesting to note how Ethereum appears to be following in Bitcoin’s footsteps as of late. However, it is wise for traders to bear in mind that past performance does not guarantee future results. Ethereum may carve its own path, or it may continue to benefit from the FOMO (Fear of Missing Out) sentiment that Bitcoin has created for cryptocurrencies. Only time can tell. But one thing remains certain for sure: it will certainly be interesting to see if both Bitcoin and Ethereum bulls will be triumphant in their cause to achieve new all-time highs soon.

ETH/USD (as of Feb 16, 2021, 10.25 a.m., GMT +8) - $1,793.45