Ethereum price incredibly bullish as bulls break above $1,400
Ethereum (ETH) could rocket towards a new all-time high (ATH) if bulls hold prices above $1,400 amid growing optimism
Ethereum (ETH) price has broken above a major resistance level at $1,400 and touched highs of $1,439. It appears ETH could rocket to a new ATH given the technical outlook currently paints an extremely bullish picture.
At the time of writing, Ethereum’s price is up 8.5% and is trading at $1,424.
ETH price positive signals
Encouragingly for buyers, the bullish technical view suggested by the charts is likely to coincide with a spike in institutional inflows, adding fuel to the anticipated surge in Ethereum’s value.
Grayscale has announced it’s resuming its placement of shares for accredited investors. Meanwhile, the CME Group will launch Ethereum futures contracts on 08 February 2021, opening ETH to more institutional investments.
According to on-chain data provider Santiment, another positive signal for ETH/USD short term is the Mean Dollar Invested Age metric. This is a price prediction metric that looks at the age of invested fiat in ETH. As per the platform, the indicator has continued to drop to suggest more inflows.
More importantly, older investments are being circulated to foreshadow a potential spike in price.
“Ethereum ticked back up to a high of $1,411 today & is currently +5.2% in the past 24 hours. Though there are concerns like the rising average gas fees, a positive sign is the fact that invested fiat in $ETH is at its youngest age since December 2018“, the firm noted.
As the chart below shows, ETH/USD has been in an uptrend since October 2020 when the invested age metric began to decline.
Ethereum’s Mean Dollar Invested Age chart. Source: Santiment
Ethereum price outlook
After breaking above the $1,280 resistance level, Ethereum increased its upside momentum and established a healthy support base above $1,300. The price of Ether has been trading upwards towards the apex of an ascending triangle pattern on the daily chart.
The horizontal line offered resistance at $1,400, which bulls have broken above as ETH/USD touched highs of $1,439. The target is to continue higher within the ascending parallel channel, with a breach of the middle line likely to see ETH/USD eye prices around $1,600.
A bullish flag pattern confirmation could send prices towards the coveted $2,000 level.
ETH/USD daily chart. Source: TradingView
However, a retracement to the support zone below the previous resistance line ($1,400), combined with other bearish signals could see ETH/USD correct even lower.
A breakdown to the uptrend line could signal a bearish flip if sell-side activity increases. In such a case, Ethereum’s price could drop to the 20-day EMA ($1,282). Although this zone provides a robust cushion, another downturn here might herald another freefall to the 50-day EMA ($1,079).