Crypto analysts are tracing the potential paths forward for Ethereum after the second largest crypto asset came breathtakingly close to breaking its all-time high of about $1,432, which was set back in January of 2018.
Trader Michaël van de Poppe says relatively low levels of volume indicate Ethereum is now set to encounter a move to the downside.
“We can see that Ether broke out yesterday, but the breakout is not as significant as we wanted it to be. In higher time frames as we can see here, it’s looking like we are topping out… The recent break out is not showing the volume that we want it to be showing and that’s why we are going to define the crucial levels to watch. If those crucial levels do not hold as support we are likely to see a breakdown again in another range bound construction.
$1,280 is a critical level for Ethereum to hold. If that holds, we could continue running and we might be hitting $1,600 quite soon.
However, if $1,280 is lost the next level to watch is the $1,080 area. If that is lost, in the worst case, we are going to look at $900 or maybe even $760.”
After a healthy correction, van de Poppe expects Ethereum to finally break through its all-time high and soar to $2,500.
A pseudonymous analyst known in the industry as Capo is also expecting a correction, but he believes it will be very short-lived.
“ETH $2,500 sooner than you think. Mark this tweet.”
Capo shares a chart indicating that he expects Ethereum to retest the $1,080 area at the start of February and then reach the $2,500 target around mid-February.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/NextMarsMedia