The price of Ethereum’s ether could rally over 30% from its current level near $2,600 as it continues to outperform the flagship cryptocurrency ahead of several major upgrades, including the London hard fork that will occur later today.
According to a note sent by Fairlead Strategies’ Katie Stockton, first reported by Business Insider, the analyst sees ETH break through its next resistance level around $2,720 to target the 61.8% Fibonacci retracement level near $3,350.
Fibonacci retracement levels are used in technical analysis to help traders identify support and resistance levels an asset may face during sell-offs or rallies. The tool is used to both measure highs and lows and is based on the Fibonacci “golden ratio,” which uses the 61.8%, 50%, 38.2%, and 23.6% levels.
The price of Ethereum surged to come close to $2,700 earlier this week and is, according to CryptoCompare data, now trading at $2,600. The cryptocurrency’s movements could see it breakout further and as such Stockton feels “comfortable taking a bullish intermediate-term stance” on ETH.
After the cryptocurrency avoided dipping below $1,720, the analyst highlighted, it preserved its long-term trend. Its momentum indicators now signal a bullish move going forward. If they deteriorate, the analyst is watching Ethereum’s 50-day moving average at around $2,150 as a potential support zone.
A drop below that level would lead to a potential drop of 20% from current levels. The cryptocurrency space as a whole, she added, could enter a risk-on mode with ETH outperforming BTC over the last few weeks:
Bitcoin is losing relative strength versus Ether, noting the ratio above has broken down below its 50-day MA and a minor low, signaling a potential switch to a risk-on environment within the cryptocurrency space
As CryptoGlobe reported, the technical analyst said earlier the flagship cryptocurrency could surge to $51,000 after it clears resistance found at the $43,000 level. Her price target was also based on Fibonacci retracement levels.
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