An optimistic analysis of the ETH price indicates it is around USD 1,880, but it might drop to USD 1,197. The Ether MA is showing a bullish trend as it is above 50-week MA and 500-week MA.
The Ether (ETH) perpetual futures analysis follows price patterns and moving averages to predict the movement of the cryptocurrency.
Perpetual contracts are derivative financial instruments similar to futures, which allow holding or trading them indefinitely. They are increasingly popular among cryptocurrency holders because they do not carry the burden of an expiration date.
Developers Use the Ethereum Network to Build New Technologies
Ethereum is a blockchain-based platform known for its native cryptocurrency, Ether. That technology creates a distributed consensus on the state of the Ethereum network. The new blocks are the hubs to process transactions, mint new Ether coins or run smart contracts for dApps.
Tech giants and companies use the Ethereum network to develop custom blockchain models. The increasing use of Ethereum will lead creators to move from proof of work to a new consensus algorithm in the coming years.
Due to its massive software upgrade, Ethereum has trended higher over the last few weeks. Investors and developers call it The Merger, which should occur in the next few months. It will change the way to classify transactions, becoming more efficient and sustainable for widespread use.
However, cryptocurrency experts are waiting to see what happens after the above upgrade. They want to know the reaction of investors and companies building their technology on the Ethereum network.
The One-Hour Analysis of the Price of Ether
The following is the recent analysis of the price of ETH explained with an hourly time frame.
An ascending channel is the price action contained between two parallel upward sloping lines, characterized by higher highs and lower lows. An ascending channel emerges by connecting a lower trendline to the swing lows and an upper channel line to the swing highs.
The price is not always within the parallel lines of an ascending channel but shows support and resistance areas to set stop-loss orders and profit targets. A break above an ascending channel may indicate an upcoming bullish trend, while a break below an ascending channel may indicate a trend change.
The price of ETH is around USD 1,508, but it could reach the USD 1,880 resistance level. If the trend reverses, Ether might drop to USD 1,197 while the sell level would be USD 1,439.
The Moving Average of Ether in the Short Term
ETH is currently bullish, above 50-week MA and 200-week MA, and there is a high possibility of a trend reversal in the price.
Ether is trading at around USD 1,508 and has accumulated a 5.0% loss over the last 24 hours. Its daily trading volume is above USD 22.18 billion, while its market capitalization is about USD 180.60 billion, according to CoinGecko.
By Alexander Salazar
