forbes.com
Ether has had an impressive day, rallying after markets responded to speculation that the U.S. Securities and Exchange Commission (SEC) may soon approve one or more applications for spot-based ether exchange-traded funds (ETFs).
The world’s second-largest digital currency by total market value reached as much as $3,702.23 today on CoinMarketCap, briefly surpassing the $3,700 level before falling back below this price point.
Going forward, what key levels of support and resistance should technical traders monitor?
Several analysts offered their points of view.
“Ether is having quite the day! It’s quickly approaching a few major resistance levels,” Brett Sifling, an investment advisor for Gerber Kawasaki Wealth & Investment Management, noted via emailed comments.
“First, we have the highs from last month that should serve as resistance at the $3,700 level. If we breakout above that level, I’d expect more resistance in the $4,000 range,” he added.
“A break of the yearly highs would give a strong case to retest it’s all-time highs of $4,868,” Sifling noted.
The market observer also highlighted some important support levels.
“If this breakout fails, we should see some near term support around $3,300 and again at $3,000. It’s important that Ether remains above the lows of $2,800, which is the recent consolidation range over the past few months.”
Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, offered an optimistic take on ether, the native digital asset of the Ethereum platform.
“Many crypto investors believe Ether will continue to appreciate, though it will face strong resistance at the $4K level that it last hit in March before falling,” DiPasquale said via email.
Should the cryptocurrency break through this level, it will face another important resistance level at $4,500, he claimed. If it falls back, the digital asset will encounter support at $3,300.
Grant Tungate, head of business development for Blockforce Capital, also chimed in, highlighting several important levels of support and resistance.
“Key levels to watch near term are the new 50d high at ~$3,730, then the year to date high ~$4,090,” he stated via email.
“On the downside the 200d moving average at ~$2760, which is near the 3 month low support zone,” Tungate added.
William Noble, who currently serves as director of research and content development for Emerging Assets Group, also offered some technical analysis.
Emphasizing that “today was a real breakout,” he stated that “Support is at 3482. It is possible that the next target is 4142 and the ultimate target is 5463.”
The chart below, which uses Binance price data pulled from TradingView, provides a visual explanation:
Ether Is ‘Just Warming Up,” Says Analyst
Tim Enneking, managing partner of Psalion, emphasized the highly bullish prospects that ether has going forward.
“Given the aphorism ‘buy on the rumor, sell on the news’ and the fact that the earliest the SEC will reach a decision on a spot ETH ETF is this Thursday (as far as I am aware), I think ETH is just warming up,” he stated via email.
“Given that the BTC ATH is still fresh on everyone’s mind from March (and potentially about to fall again here shortly), clearly the next level of resistance for ETH is $4,084 (the most recent, two-plus-year high), followed by $4,864 (its ATH),” Enneking added.
“ETH now has massive support at $3,100; the trick will be to flip $4k from resistance to support. That may well happen over the next several days,” he stated.
“If the SEC decision is positive, the ETH ATH will probably fall, with $4k become major support at that time.”
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and SOL.