ETH/USDT is Eyeing $1500 This Week
Despite the fact that there is a correlation Ethereum along with that of Bitcoin, ETH seems to have been living “its own life” in the last few weeks. So, while the BTC / USDT pair was experiencing a correction over the past few weeks, and temporarily dropped below the support level of $ 30,000, ETH / USDT pair, on the contrary, is trading close to the resistance level. Last Monday, ETH hit a new all-time high of $1475, very close to $1500. However, after another breakout, ETH didn’t go higher and fell below the support level ($1200) again .
There will be another correction on ETH/USDT most likely in the coming days.
But based on the fundamental analysis, ETH may surge higher soon in the following months.
Chicago Mercantile Exchange (CME), is awaiting regulatory approval of an application for listing ETH futures on February 8, 2021, which may become an impetus for ETH’s further price increasing.
Another reason for the growth of Ethereum may be the transferring crypto assets to OTC wallets. In mid-January, investors withdrew about $ 2.5 billion in ETH from the exchanges in two days. This trend continued, with reserves of the coin on the exchanges dropping to a minimum since 2018.
Galaxy Ethereum Fund will open access to the ETH for accredited investors. The asset value will be based on the Bloomberg Galaxy Ethereum Index.
For management, Galaxy Digital will charge 1% on an investment of $ 100K and 1.25% on a smaller investment. The threshold for participation will be $25,000. In the other two funds, the commission will be 0.75% for Class A shares and 1% for Class B shares.
All of these could contribute to further growth of the ETH price this year.
The first thing to pay attention to is the price pullback immediately after the $1475 breakout. A false breakthrough may indicate that the strength of the Bulls, although not exhausted, is still at the limit, which means that the bears can intercept the power.
A small bearish divergence has formed in RSI indicator on the weekly chart, which is clearly visible on the daily interval, while the MACD indicator has began to decline.
On the daily price chart, the RSI is approaching the neutral zone and the MACD indicator is in the zone below zero, indicating a short-term bearish trend.
And although it is impossible to completely exclude a possible next attempt by the Bulls to break through the resistance, to long ETH investor should be more cautious. But after the end of the correction, there will be another opportunity to buy in at a better price.
To go short, it’s better to wait for the final confirmation of the beginning of the correction which is RSI signal line crossing from top to bottom.
The material herein is provided for informational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell cryptocurrencies or derivatives. The material is not intended to be used as a general guide to investing, or as a source of any specific investment recommendations, and makes no implied or express recommendations concerning the manner in which any client’s account should or would be handled, as appropriate investment strategies depend upon the client’s investment objectives.