Ethereum Likely to Rally Past $1,400, Trading Volumes Explode

The Ethereum price rally of H1 Jan 2021 looks likely to resume following sharp gains in the last few hours. Picking up from developments in the late New York session, buyers are flocking in, cementing buyers’ position as evidence from price action in the European session.

Technically, the ETH/USD is on an uptrend and may print new 2021 hours if buyers keep up with this pace.

As of writing on Jan 19, the ETH price is changing hands at $1,338, adding 10 percent versus the greenback on the last day. The digital asset also maintains an upper hand versus BTC, gaining 18 percent versus the digital gold in the last week of trading.

Participation levels are also elevated. Judging from the uptick in open interest, the ETH price may continue to edge higher. On the last day, the average Ethereum trading volume rose 11 percent to $30 billion.

Ethereum (ETH) Price Overview

The series of higher highs in the last day hints of demand in lower time frames, a net positive for bulls. In an ascending triangle, immediate resistance is at $1,350—the 2021 all-time high.

This is a region of resistance, a sell-wall that, if broken, could easily see the ETH/USD price roar to $1,750 in a bull break out pattern.

On the lower end, the 20-period moving average in the 4-Hour chart is the immediate support. Losses below this and the trend line invalidates buyers, setting the pace for lower lows back towards Jan 2021 lows of around $930.

Overly, buyers will be in the driving seat provided there is a convincing break above the consolidation of the last few weeks. Odds of the ETH/USD printing a new all-time high above $1.4k of 2017 remain high once there is a high volume close above $1.35 or Dec 2020 highs.

Ethereum (ETH) Market Movers

There is interest in Ethereum. Open interest—a measure indicating the number of open positions is high. Since prices are edging higher, it could mean there is more demand than supply for the second most valuable digital asset.

#Ethereum $ETH open interest rebound. Surpassed $4 billion! pic.twitter.com/2bjYjVpQtP

— Coinalyze (@coinalyzetool) January 19, 2021

Accompanying the expansion of open interest is daily volumes, which’s going parabolic according to Messari.

Ethereum's daily transaction volume is going parabolic.

It now settles $12 billion in transactions daily – $3 billion more than Bitcoin.

Imagine not being bullish $ETH. pic.twitter.com/3NfOz1ruiM

— Ryan Watkins (@RyanWatkins_) January 19, 2021

Combined with investor confidence and Ethereum flipping Bitcoin in almost every other aspect outside of hash rate, analysts project the ETH/USD price to break out above $1.4.

#ETH is about the join the new ATH club. 👏

— CZ 🔶 Binance (@cz_binance) January 19, 2021

The ETH price outperforming BTC is even when institutions are flocking to BTC, channeling millions. This, according to proponents, highlights the value proposition of the smart contracting network and its relative undervaluation.

Ethereum Price Prediction

The ETH/USD is on the brink of printing a new 2021 high.

Although still in range mode, trading volumes and interest in the coin continues to rise. As of writing, prices are ranging inside an ascending triangle.

There is a clear resistance level–$1.35k, visible in the 4-Hour chart.

A break above this will spark FOMO, propelling the ETH/USD price to $1.75k, the 1.618 Fibonacci extension level based on Jan 2021 trade range.

Conversely, losses below the 20-period moving average (the middle BB) and the support trend line can slow down bulls, as ETH corrects to $930.

For the risk-averse, as long as prices range inside the $420 range with caps at $1.35k and $930, bulls stand a chance.

The longer the squeeze, the stronger the breakout.

Chart courtesy of Trading View

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