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Will Ethereum price exceed $ 250?


Ethereum price continues to maintain its short-term uptrend. This makes us wonder if it will be able to effectively overcome the $ 250 barrier. To find an answer, we have done the ETH analysis below.

Ethereum fundamental analysis

One of the main reasons for the success of the Ethereum network is the unlimited development environment. Where all the participants can contribute to its growth, and even use it as a basis for solving needs totally unrelated to the project itself, through the development of decentralized applications.

Thanks to this ecosystem, today your network has the most active users among altcoins, according to data from the FCAS metric, which stands for Fundamental Crypto Asset Score, provided by Flipside. This metric measures user activity, asset maturity, and development activity in more than 450 crypto projects.

Top 15 Altcoins organized by user activity on the network. Source: Flipside
Top 15 Altcoins organized by user activity on the network. Source: Flipside

The massive dApps development environment that the ETH network possesses, despite being a great indicator of growth, is also a problem at the same time. Since it increases network stress, and tests one of Blockchain’s most important challenges, scalability.

However, with Ethereum being the 2nd largest cryptocurrency in the world, the developers are fully aware of that, and are in favor of increasing the capacity of the chain.

Road to Serenity

Since 2018, a network update has been in progress, known as Serenity. The main purpose of switching to a Blockchain validated with Proof of Participation, a much more scalable model.

Even though there is no fixed launch date yet, it is well known that it is getting closer to being a reality, which continues to attract investor interest to the cryptocurrency.

Interest on Ethereum increases

As has been repeatedly commented, the investment interest by large institutions is increasing in the crypto market, and it is not only Bitcoin that they are buying.

More than 22% of one of the largest cryptocurrency funds, managed by the firm Grayscale, corresponds to investments in ETH. Increasing these large investments will undoubtedly lead to Ethereum’s price above $ 250.

Net Assets Under Management by Grayscale, posted May 8, 2020. Source: Grayscale
Net assets under management by Grayscale, published May 8, 2020. Source: Grayscale

In this way, we are seeing quite good bases behind the Ethereum price revaluation up to USD 250. In addition, the probable upward continuation for the short and medium term, below we see what are the key supply and demand levels to watch.

Ethereum price technical analysis

The daily time frame, excellent place to observe the short-term trend. This indicates a bullish sentiment, as we observe ever higher lows, supported by the 8-day EMA and 18-day SMA.

The 200-day SMA is also bullish today, following the price appreciation in recent months.

Currently, the price of Ethereum is fighting against a barrier at USD 245, which if surpassed, will quickly go to test the recent highs around USD 250. It is there where the most important psychological zone is, to overcome it, the space will be empty until the surrounding offer zone at USD 285. In the short term, the odds are in favor of this scenario.

To wait for sales, ETH must break the support at USD 231.5, although at the moment it does not seem to be the most viable scenario, it would be totally healthy, since from higher time frames, the price should take a breather.

Technical analysis of Ethereum price before exceeding USD 250. Source: TradingView
Technical analysis of Ethereum price before exceeding USD 250. Source: TradingView

Weekly seasonality

As I commented, from longer candle charts, the price is in the midst of momentum, without making any valid pullbacks, however this does not guarantee that you should take a breather before continuing.

At the moment, the price of Ethereum is more likely to exceed $ 250, and go looking for $ 285, where the most important weekly barrier is, breaking it would be an excellent signal for the medium term.

The 8-EMA and 18-week SMA are crossed higher, following the sequence of increasingly high lows seen in smaller frames.

Technical analysis of the weekly chart ETH USDT. Source: TradingView
Technical analysis of the weekly chart ETH USDT. Source: TradingView

All our publications are for informational purposes, so they should not be accepted as investment advice under any circumstances.

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