Ethereum Price Retesting 2021 Highs, ETH/USD Bulls Aiming at $2k

The Ethereum price only trails Cardano (ADA) and Binance coin (BNB) in the top 10, adding seven percent on the last day and trading at around 2021 highs.

As of writing, the ETH/USD is above $1.4k, a move that solidifies buyers’ positions, confident of even more price gains in days ahead. Bulls are resilient, soaking sell pressures and unwinding losses of late January 2021.

Overly, the ETH/USD price is consolidating but maintains an uptrend below its all-time high. However, a boost of confidence for bulls is the increase in the average trading volumes on the last trading day.

Tracking rising prices, ETH trading volumes are up to $27.8 billion, adding eight percent, sustaining the upward momentum and cementing buyers’ optimism of more upswings.

Ethereum (ETH) Price Overview

The uptrend is firm from ETH/USD price charts.

Although prices are consolidating, moving inside a rising channel, odds of a breakout to a new all-time high remains elevated.

As it is, the immediate resistance is at around $1.48 or Jan 25 highs. A firm, high volume close above this mark could spark more FOMO and an influx of funds that may pump the coin towards $2k. ETH/USD must surge past $1.5k to shake off sellers of late Jan 2021 from an Effort versus Results point of view.

On the flip side, there is support at the 20-day moving average (middle BB). For sellers to wipe out gains and mark the end of this uptrend, there should be a solid close below the middle BB with high trading volumes.

Technically, and from candlestick arrangement, that bear bar should close below Jan 21 low with markedly high trading volumes. This will confirm bears of the conspicuous bar setting in motion a sell-off towards important supports—previous resistances, below $1k.

Ethereum (ETH) Market Movers

Ethereum is a leading smart contracting platform and the home of DeFi.

Pointing to activity is the surge of miner revenue. It is at a new all-time high.

New ATH for Ethereum miner revenues! They made a total of $829.5 million in January (39.2% of these were fees). pic.twitter.com/0vwpbKJqC8

— Lars (@lars_hl) February 1, 2021

Miner revenue translates to higher network transaction fees—Gas, negatively impacting user experience.

Outside of Gas fees, participants are optimistic Ethereum will eventually eclipse Bitcoin. They point to DeFi and how revolutionary the sub-sector has been.

There is a case of ETH eventually becoming a store of value asset, replacing BTC due to its long-term low inflation once Eth2 officially launches.

I’m increasingly of the mind that Ethereum & DeFi will be larger – much larger – than Bitcoin.

Bitcoin is a SoV substitute (i.e. gold). Ethereum is also a SoV substitute, and DeFi unlocks entirely new economies & use cases.

Case in point: Bitcoin in Ethereum/DeFi

— Santiago R Santos (@santiagoroel) February 1, 2021

For perspective, ETH prices outperformed BTC in 2020 even after the latter’s halving.

And the trend continues if performances of the last two months guide:

Last month #Ethereum's been up about 2x over #Bitcoin. pic.twitter.com/QMbN0I3ULO

— R.Heart HEX.com 40% APR 352x $ in 361d ⬣🚀🌘 (@RichardHeartWin) February 2, 2021

Ethereum Price Prediction

The ETH/USD price is up seven percent versus the greenback on the last trading day. Year-to-date, ETH is up a massive 6X.

From the candlestick arrangement in the daily chart, the path of least resistance is northwards.

Presently, ETH/USD is moving inside an ascending triangle with caps at $1.48k. A break above this level with high trading volumes opens up prices to $2.1k based on the Fibonacci extension level of the Dec to Jan 2021 trade range. This bull target flashes with the 1.618 extension level.

On the flip side, a price contraction below the middle BB and Jan 21 low of $1k will unwind recent gains, possibly sparking a sell-off back to $900. This will subsequentially confirm bears of Jan 21, paving a path for sellers in a breakout pattern and bear continuation set in motion in late Jan 2021.

Chart courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.