Ethereum price potential to $3,000 becomes apparent amid increasing utility in DeFi

Tuesday 26 January 2021, 12:21 PM AEST - 4 weeks ago

ETC-WETC-DAI-DeFiEthereum price potential to $3,000 becomes apparent amid increasing utility in DeFiUpland

  • Ethereum holds firmly onto support at the 50 SMA on the 4-hour chart.
  • ETH begins the uptrend afresh, targeting levels above $1,500.
  • A possible double-top pattern could jeopardize the rally to $3,000 and perhaps lead to more losses.

Ethereum has been adamant to follow in Bitcoins footsteps over the last couple of weeks. The flagship altcoin executed its own rally even after BTC ran out of steam. The rise to a new all-time high was particularly encouraging to the investors, whose confidence in recovery to levels around $3,000 has increased greatly.

Ethereum seeks higher support before resuming the rally

The recent spike from the support slightly above $1,100 elevated Ethereum to highs around $1,481 (on Coinbase). It was clear that buyers eyed an upswing past $1,500 but Ether lost momentum, leading to a reversal.

The 50 Simple Moving Average on the 4-hour chart has provided support for Ethereum at $1,300. ETH is trading at $1,365 as bulls push for a return to price levels beyond $1,400. The Moving Average Convergence Divergence or MACD suggests that Ethereum is gradually falling back into the hands of the bulls, evidenced by the move into the positive territory.

ETH/USD 4-hour chart ETH/USD price chartETH/USD price chart by Tradingview

Trading above $1,400 will add credibility to the expected move past $1,500. Moreover, a move of this magnitude could trigger the fear of missing out (FOMO) as investors rush to take advantage of another rally targeting $3,000. According to the Chief Technology Officer at Bitfinex, Paolo Ardoino:

The Ethereum pri ...

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