Ethereum “needs to ricochet” as ETH bulls hold $ 5,000 rally with hope over key support channel
Ethereum’s native token Ether (ETH) is likely to see another strong rally in the upcoming sessions as its price falls in a trading zone that has attracted buyers recently in the past.
The uptrend line has triggered the ETH price rally since early October 2021 and emerged as part of a broader ascending range of channels.
As a result, Ether’s least resistance path is up despite a decline in the channel’s upper trendline, with its quarterly returns currently above 38%.
Most recently, the uptrend line was instrumental in limiting the sell-off that followed Ether’s rally to new record highs of over $ 4,870. This leads analysts to expect another strong rally in the future, with the “swing long” setup published by FOREXN1 on TradingView calling for a rally to USD 5,000.
MacroCRG, an independent market analyst based on Twitter, speak Ether “has to rebound” as it manages to hold the uptrend line as support after the last decline.
Meanwhile, another analyst, Pentoshi, also forecast a rebound but discussed the prospect of a correction below the uptrend line. Except his tweet from November 12th:
“I want to get rid of 20-30% on alts. Usually the price drop is the bull run. Just because I want it doesn’t mean it’s going to happen. Please be afraid. “
Pentoshi’s downside target in the event of an extended correction is around $ 4,000, as shown in the chart below.
Macro-fundamentals support ETH bulls
Ethereum’s limited ability to correct and – this peak – make new highs does not seem to have all technical factors.
Chris Weston, Head of Research at Pepperstone Financial Pty, cites fears of high inflation as the common denominator that has increased demand for the potential hedging asset in the crypto market, leading to rallies over 500% of Ether and 130% of Bitcoin Year 2021.
For investors, “cryptocurrency is where money comes in quickly,” Weston said in a note.
In addition, Mike McGlone, chief commodities strategist at Bloomberg Index, said last week that he expects a price point of $ 5,000 for ether and said that “the portfolio of a combination of gold and bonds is becoming increasingly bare with no bitcoin and Ethereum joining the mix “.
No. 3 #Crypto Musketeers are driving a $ 3 trillion market cap – a better trading system, ecosystem, and asset class of residence, #Cryptodollars is the most important progressive part of the digital currency revolution and the third leg of the cryptocurrency segment. pic.twitter.com/qhEOXttPW8
– Mike McGlone (@ mikemcglone11) November 9, 2021
The analyst names the reduced offer as important bullish support for Ether.
In particular, Ethereum’s software upgrade known as the “London Hard Fork” implemented a code change in August that began to burn some of the gas fees paid to the miners through ETH, effectively reducing supply.
Related: Ascending Channel Model and Ethereum Options from Data Traders $ 5,000 ETH Target Response
According to UltraSound.Money, the upgrade has resulted in the removal of more than 860,500 ETH tokens valued at more than $ 3.2 billion since implementation. At the current pace, the Ethereum network is expected to burn 5.3 million ETH tokens per year, compared to 5.4 million issued.
McGlone noted that a reduced supply ratio will hold ether against increased demand. Abstract:
“Just staying on course is the more likely outcome as we can see. Ethereum has joined Bitcoin with a declining supply curve by code. The first cryptocurrency is a store of value and number 2 is the building block of DeFi. “