Ethereum breaks out of a lengthy descending channel validating the ongoing uptick for gains above $2,000 while ETH’s bullish outlook improves.
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Ethereum (ETH) made headway above $1,900 on Wednesday amid growing optimism for the likely approval of a bunch of Bitcoin spot exchange-traded funds (ETF) in the coming few days by the US Securities and Exchange Commission (SEC).
The largest smart contracts token, which had retreated into the $1,800’s range reclaimed support at $2,000, extending the weekly gains to 4% and monthly cumulative gains to 21%.
Traders are now gazing towards the next swing above $2,000 for the first time since July, bolstered by the hope for a Bitcoin spot ETF. A higher support at $1,900 would go a long way to reinforce the bullish thesis, paving the way for a run-up beyond $2,000.
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Ethereum Price Prediction: Levels To Watch As ETH Eyes Breakout Above $2,000
The On-Balance-Volume (OBV) indicator affirmed the bullish outlook in ETH price after it resumed the uptrend around mid-October on the weekly chart. This indicator tracks both the inflow and outflow volume of money in the market.
A continued uptrend suggests that traders are willing to bet on Ethereum price moving north as opposed to pulling back. Hence, upholding support above $1,900 would greatly add value to the uptrend.
The fact that Ethereum price has sustained its position above all the key bull market indicators, implies that a bull run is already upon us. Therefore, gains above $2,000 are bound to occur sooner or later. However, based on the technical outlook, ETH could start the journey toward the next key milestone at $3,000 this week.
An ascending triangle as illustrated on the chart further validates the expected breakout. However, bulls must focus on breaking the resistance at $2,100 to entice more buyers to seek exposure to ETH, thus creating the momentum needed to move the price.
Has The Ethereum Bull Train Left The Station?
Ethereum price is currently in bullish hands and they are unlikely to let go for a long time, especially with the daily chart showing a clear breakout above a long-standing descending channel resistance.
On top of the channel breakout, Ethereum has presented a couple of bullish crosses. The first golden cross occurred when the 50-day Exponential Moving Average (EMA) (red) flipped above the 100-day EMA (blue). Another bullish cross followed closely with the same 50-day EMA (red) moving above the long-term 200-EMA (purple).
Traders and investors will continue to book positions in Ethereum as long as the bullish thesis stands. Moreover, the panel of specialists brought together by Finder recently predicted a larger breakout in Ethereum price to $5,800 by 2025.
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