Ethereum Reaches Vital Striking Distance, Overcomes $2,000 Psychological Price Level

Ethereum Reaches Vital Striking Distance, Overcomes $2,000 Psychological Price Level

February 20, 2021

Ethereum bulls are set as they attempt to break the $2,000 price level. In the first attempt, the price broke through but was repelled at $1,950 high. Today, the price is approaching a high of $2,027.90 at the time of writing.

The bottom line is that if the bulls break the $2,000 high, the market will rally to $2,500. Subsequently, the bullish momentum will continue on the upside. However, if the bulls fail to push above the $2,000 overhead resistance, Ether will decline to $1,725. Presently, the price indicators are showing that the price has reached the overbought region of the market. It is not clear whether the current bullish momentum will continue or subside.

Ethereum indicator analysis  

The price is attempting to break the resistance line of the ascending channel. The uptrend will continue as the price breaks and closes above the resistance line. Ether has reached level 73 of the Relative Strength index period 14. In the same vein, the cryptocurrency has been above the 80% range of the daily stochastic for the past three days. The current bullish momentum may subside.

Technical indicators:  

Major Resistance Levels – $2,500 and $2,700

Major Support Levels – $1.800 and $1,600

What is the next direction for Ethereum? 

The Fibonacci tool has indicated an upward movement of the market. On February 19 uptrend; a retraced candle body tested the 88.6 % Fibonacci retracement level. This retracement indicates that ETH will rise to level 1.1129 Fibonacci extensions or a high of $1,977.27. However, the price action has surpassed the Fibonacci price level. Presently, Ether’s price is approaching a high of $2,030.

Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their research before investing funds.

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