Traders are torn between the question will Ethereum prices rise higher than the current value or is this the new resistance level? The question comes after altcoin reaches the value of $547 today, that is the new high of 2020.
Ethereum Crosses $547 Following The Footsteps Of Bitcoin; What Do Traders Say Next?
After the massive upsurge of Bitcoin since the beginning of this year, it is now time for altcoins to grow. One of them, Ethereum (ETH), has now successfully crossed a record value of $547 recently and is expected to shoot higher. However, several traders have brought out analysis stating that a resistance level might be nearing now that the value is reaching new heights.
Short-term traders consider the $600 mark as the chief resistance zone for Ethereum (ETH). This is based on a value trend marked during 2018 May when the price of altcoins started falling right after the $600 mark. Currently, the $547 mark could count as a selling point for short-term traders.
However, some other traders are of the opinion that if Ethereum prices cross the $600 mark, it will possibly rise to the higher range of $700- $900. Above that range, there is little possibility of resistance until a record high.
Reasons For The Growth Of Ethereum Price
According to recent reports, numerous reasons have factored in the rise of Ethereum values. Firstly, the Ethereum 2.0 upgrade in ETH network has resulted in bringing positive numbers to the Ether market. The trading volume of ETH has increased considerably over the past few months.
Ethereum 2.0 upgraded version was to upgrade the PoW (Proof of Work) algorithm to PoS (Proof of Stake). This means that the upgraded version has removed miners from the ETH network for optimization of Ethereum transactions.
Secondly, chainanalysis shows whales are after Ethereum. This comes after Ethereum exchange dropped at main reserves with deposit contracts of Ether increasing rapidly.
Santiment researchers wrote after the rise that Ether is following in the footsteps of Bitcoin in 2020. The value rise comes after 29 months after the 2018 high. Expert analysts like Michael van de Poppe of the Amsterdam Stock Exchange are of the opinion that a pullback is likely at the $600 milestone but beyond that Ethereum can even cross the $1000 milestone.
A trader named “Rookie” similarly mentioned that Ethereum prices can hike up to $700 by the end of this year. The trend will look parabolic if the rise continues over to the next year.
Most altcoins relatively remain stable during the rise of Bitcoin but start growing after Bitcoin peaks. Ethereum’s current momentum is in line with the 2017 trend. For it to retain this uptrend, it has to cross the $600 milestone in the upcoming days.