With Bitcoin’s price locked in a small range, with resistance at $ 10,000, the rest of the ecosystem participants have remained fairly stable, piling up orders that could lead to a big bang. Ethereum (ETH) is in a very good position to take advantage of this situation, wondering if the Ethereum price is about to explode.
Despite everything, we could still see declines in the short term.
When an uptrend fails to continue quickly, the bears will most likely take temporary control. But as I have repeatedly commented, currently cryptocurrency sellers don’t have much room, before the bulls get to scare them away.
Ethereum is one of the best located for a significant appreciation. It has the necessary characteristics for some analysts to consider that it is undervalued, and a forthcoming update that will be the perfect rocket to the moon.
Ethereum on the way to version 2.0, and its price in minimum
Ethereum price is recovering after reaching an extremely important low zone. This worked in the background in the fall of 2019, and after the strong crypto winter of 2018.
On this occasion, arrival in the area occurred with the fall of Black Thursday in March, promoted by the Coronavirus effect. Today, however, Ethereum has recovered by more than 180% since that 2020 low. Clearly, core value supports a higher price.
Today the Ethereum network is the most active in the ecosystem, thanks to a network that promotes development DeFi (decentralized finance), capable of providing solutions to a multitude of needs, which do not necessarily have to be linked to the purpose of ETH as a cryptocurrency.
A network without limits?
The Ethereum Blockchain is an environment of exponential growth, with tools that go far beyond being just a form of money.
It is thanks to this that it has secured its place as the second largest in the crypto market, and with a good advantage over the others.
There is no doubt that its ecosystem is of pure positivism, if we focus on its ability to grow.
But, since nothing is pink, this brings its problems, mainly related to the scalability of the network, which refers to the ability of the network to process requests.
The developers are aware of this. To fix this, a network update is currently underway, which is named Serenity.
Its main objective is to make a transition from the Ethereum blockchain to a validated one with Proof of Participation, known in English as Proof of Stake.
With the decrease in network congestion, the terrain will be cleared for developers to continue taking advantage of smart contracts, for the creation of Blockchain solutions.
Once the context surrounding Ethereum is known, we can analyze the situation and answer the question if the Ethereum price is about to explode.
ETH Technical Analysis
In the long term there is a major barrier, which is still quite a way from Ethereum’s current price, and is somewhere between $ 310 and $ 365 approx.
Breaking it would leave room for at least $ 800 in a matter of weeks.. Then the historical highs area would be the next relevant supply area.
For the medium term, looking at the moving averages EMA of 8 and SMA of 18 weeks is a good way to identify the trend. They are currently bullishly crossed.
The 200-week SMA worked as a dynamic resistance recently. If it is traded to the upside, it would be an excellent signal for the medium term, and it could be starting the breakdown of the most relevant supply zone, and a bullish price explosion.
In the short term, the trend turned bearish recently, although, as I mentioned, the space for bears to generate profits is not too much, and the bulls are already demonstrating it, defending the area of demand around USD 225.
The EMA of 8 and SMA of 18 are crossed lower. As long as it is maintained in this way, nearby supports will be visited in the coming days. For this to change, the resistance at $ 237 is broken.
The 200-day moving average is currently bullish, supporting the strong gains that Ethereum price has generated in recent months, and the medium-term bullish trend.
And what do you think ?, Will the Ethereum price of exploding on the rise be close ?. Let us know your opinion in the comments.
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