Ethereum (ETH) Price Analysis: Look at These Next Upside Targets
Ethereum has been trending higher, trading above a rising trend line connecting its latest lows. Price has made another bounce off this support zone, which lined up with a former resistance.
Applying the Fib extension tool shows the next potential upside targets. The 38.2% extension is near $775 then the 50% extension is at $800. Stronger bullish pressure could take it up to the 61.8% extension near the swing high or the 76.4% extension at $852.48. The full extension is located near $900.
The 100 SMA is safely above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. This suggests that the uptrend is more likely to continue than to reverse. In addition, the 100 SMA recently held as dynamic support. The gap between the moving averages is widening to reflect strengthening bullish momentum.
Stochastic is also pulling up to show that buying pressure is present while RSI is turning higher without hitting oversold conditions. This suggests that bulls are eager to charge once more.
Cryptocurrencies took hits after finance moguls Warren Buffet and Bill Gates had some bearish things to say about bitcoin, dragging other altcoins like ethereum lower as well. Besides, the presence of geopolitical risk has also weighed on investor risk appetite in the past few days.
In contrast, the dollar has gained some ground on safe-haven demand and hawkish Fed commentary. Some FOMC officials have expressed willingness to let inflation run past the 2% target before tightening more aggressively, which suggests more room for growth and rate hikes.
Still, industry developments in the altcoin sector have been mostly positive and supportive of longer-term gains. For ethereum, however, the upcoming meeting among US regulators on their decision on how to classify the cryptocurrency is keeping some jitters in play.
This meeting is slated to take place this week and officials from the SEC and CFTC are set to decide if ethereum should be treated as a security, which will have implications on dapps and startups based on it.