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Ethereum May Hit $ 800 In 2020 If This Bullish “Mini Cycle” Repeats

Markets tend to behave in massive cycles. One such cycle is the previous Bitcoin price cycle (BTC) from 2014 to 2017. However, Within those cycles, there are multiple smaller cycles that could be repeated often.

A similar approach and analysis can be done for Ethereum Ether (ETH), which is outperforming BTC so far this yearas most of its upward momentum moves have been strongly corrected to retest previous resistance levels.

When is the best period to buy ETH / USD and what potential levels can be reached on the next move? Let’s take a look at the charts.

Ether seeks a higher low to confirm a new uptrend

ETH/USD 1-week chart

ETH / USD one-week chart. Source: TradingView

Weekly chart shows a clear break above the 100 and 200 week moving averages (MA) earlier in the year. A breakout that also caused the price to break above the crucial resistance level of $ 300.

This $ 300 barrier has been a resistance zone for almost two years, since the Ethereum bear market started in February 2018.

Since this accumulation period, the price of Ether has been hovering between $ 80-300. Finally, After almost two years, ETH / USD broke above $ 300, and it rallied towards the next resistance zone, around $ 500.

However, a breakout is unlikely during this period as the crypto markets appear to continue to consolidate in a new cycle. This accumulation is relatively boring and does not provide massive volatility.

Another clear sign of this accumulation period is the incentive to continually backtest each previous resistance zone for support. These retests add an extra boost for more benefits later on.

The $ 300 resistance zone could most likely be the support level

ETH/USD 1-week chart

ETH / USD one-week chart. Source: TradingView

A higher high has already been set, as the chart shows in relation to the current trend. After that high, the market is looking for a higher and clearer low to confirm the existing trend reversal.

However, the crucial question in this regard is at what level can a higher minimum be set? The most profound answer to this question is that previous resistance at $ 300 turns into support.

But even if the $ 300 level does not hold, the 200-week MA at $ 220-245 can sustain and confirm the higher low. Investors should keep an eye on these two zones to see if buyers are intervening. The $ 300 level is already holding as support, increasing the probability that Ether will hold above this level.

Second, as markets tend to move in substantial cycles, new potential resistances can be defined. The impulsive move is usually the shortest, as cumulative and corrective moves tend to take the longest.

If the $ 300 area holds the support, new resistances and levels can be defined through the horizontal price levels and the Fibonacci extension tool.

ETH/USD 1-week chart

ETH / USD one-week chart. Source: TradingView

The next potential resistance levels can be found through these indicators and tools at $ 600 and 775-825.

This would mean that the Ethereum could rise more than 100% on the next momentum move, taking the markets to the next level. Si el Ethereum 2.0 is launched, the strength will only increase, indicating that the second level has most likely been reached.

Patience is required to buy ETH based on the BTC chart

ETH/BTC 1-week chart

ETH / BTC one-week chart. Source: TradingView

Multiple arguments and analysis can be derived from the ETH / BTC chart. One of them is the construction of the range between the 100 and 200 weeks MA, which indicates that the up move was rejected in the 100 weeks MA.

Yet another indication is made that the price of Ethereum provided weakness during the fourth quarter of the year.

The bottom constructions were done in December and January, after which there was a great momentum movement. Thus, the best period to enter ETH is December and January, a move that has historically rewarded patient investors.

If the bottom construction is over and history repeats itself, potential resistance zones can be found at 0.058 and 0.072 sats, similar to USD values.

ETH/BTC 1-day chart

ETH / BTC 1-day chart. Source: TradingView

The ETH / BTC daily chart shows clear support at the 0.03 sats level. However, this level of support has been the subject of several tests, which means that another test could cause the price to fall further south.

However, this is not horrible, since the lower support level hasn’t seen a confirmation test (a support / resistance turn) yet. Traders should watch 0.026 sats if the 0.03-0.031 sats level is lost for support.

In general, Tremendous opportunities may arise in the markets in the coming weeks / months as the year 2020 draws to a close, particularly if history repeats itself.

Further, the further you go into a cycle, the greater the momentum that moves. Therefore, eAnother run of more than 100% for Ether is likely if it breaks the $ 450 mark.

The views and opinions expressed here are solely those of the Author and do not necessarily reflect the views of Cointelegraph. Every investment and trade movement involves risk. You must carry out your own research when making a decision.

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