BNB and IOTA on record chase, Ethereum struggles towards the north

The price trends of BNB and IOTA have been extremely bullish this trading week and are clearly heading north. Although Ethereum is not able to jump behind as strongly, it still has its sights firmly set on the important milestone at USD 2,057. Altcoin market analysis.

The Ether price is also able to make further gains in the course of the bull rally on the overall market and continues to approach the USD 2,057 mark, which has been mentioned repeatedly in recent analyses. It remains to be seen to what extent the announced hard fork of the Ethereum beacon chain could Bitcoin Circuit influence the price.

Other altcoins are currently leading the race. However, Ethereum is also gradually rising further north. The interest in the DeFi sector is also fuelling the price rise this week. The Ether price is also moving this week above the first important moving support EMA20 (red), which is currently at USD 1,715. The important first price target in the form of the 261 Fibonacci extension at USD 2,056 is within reach and should be approached soon. This price level also corresponds very well with the red upward trend line. If there is no significant profit-taking here and the Ether price can also dynamically overcome this resistance level, the next price target is activated at USD 2,809. This is the 361 Fibonacci extension of the overarching movement.

Investors are likely to take profits again at this projected resistance. If the Ether price continues to rise northwards after a short consolidation and breaks through the 361 Fibonacci extension, price targets at USD 3,274 and USD 3,562 will come into view. In particular, USD 3,562 will be relevant in the coming months, as the important 461 Fibonacci extension runs here. A consolidation to USD 2,809 would be important for the sustainability of the rise. If the price rally on the crypto market remains intact, the Ether price could even rise to a maximum of the 561 Fibonacci extension at USD 4,315 in the first half of 2021. For the time being, the maximum bullish price target for 2021 remains at the 661 Fibonacci extension at USD 5,068.

Bearishe variant (Ethereum)

If the Ether price bounces downwards in the area of 2,057 USD or even before and breaks through the support at 1,880 USD, the EMA20 (red) first comes into view. This is currently at USD 1,715. If this chart level does not hold, Ethereum should initially correct to USD 1,590. This is the 200 Fibonacci extension and the super trend in the daily chart. If the USD 1,590 level is also undercut dynamically, a correction to the important support area between USD 1,482 and USD 1,425 is to be expected. Here, bullish investors are likely to make new purchases and move Ethereum back towards USD 1,715 and above. If, on the other hand, this area is undercut by the daily closing price, a fall back to USD 1,377 is to be expected. This price level has acted as a resistance level several times in the past.

If this chart level is also abandoned, the support levels at USD 1,303 and USD 1,223 come into view. At these support levels, the bulls will once again want to take the helm. If the bears manage to break through this price level dynamically, a correction to the low of the last 20 days at USD 1,042 is likely. If the price also falls below USD 1,042, this represents a trend break. Further downward pressure would be the consequence. The ether price is then likely to fall back to USD 922, the price low of 11 January. Continued weakness in the overall market would activate the maximum bearish price target at USD 837. This cross support from the 2018 high and the breakout level of the current rally movement once again serves as strong support.

Indicators (Ethereum)

The RSI as well as the MACD indicator continue to show a buy signal, but neither seems really strong at the moment. If a consolidation occurs soon, both indicators will activate a new sell signal. On a weekly basis, both indicators have also been at an overbought level for weeks. This is another reason why Ethereum cannot currently follow other altcoins such as the Binance Coin (BNB).