Ethereum Price (ETH) Ripe for a Bullish Breakout to $400
Ethereum price (ETHUSD) is in a holding pattern even as the Decentralized Finance (DeFi) industry continues firing on all cylinders. The currency is trading at $375, which is in the same range it has been in the past few days. Still, the price is above last week’s low of $333.
There are two main things moving Ethereum today. First, analysts believe that the dollar will remain under pressure in the next few weeks. In a report released during the weekend, analysts at Goldman Sachs said that they expect the greenback to remain under pressure as the odds of Biden winning the election continued to rise. The dollar index is up by 0.10% today.
Second, Ethereum price is in a holding pattern as the popularity for DeFi keeps rising. A report by DappRadar showed that the industry experienced significant growth in the third quarter. In total, the total value of transactions in DeFi rose to $123 billion. In this, 96% of the total value was in Ethereum transactions.
The other competitors, EOS and Tron have a 5% and 35% market share respectively. Indeed, according to data by DefiPulse, 40 of the 41 biggest DeFi projects are in the Ethereum industry. Analysts believe that the DeFi industry will receive a boost once the ETH 2.0 upgrade completes because it will reduce costs and make transactions faster.
Ethereum price technical outlook
The 2-hour chart shows that Ethereum price is on the cusp of a bullish breakout. As shown below, the price rose sharply last week and then formed what seems to be bullish flag pattern that is shown in pink. As you will find in our comprehensive free online trading course, this pattern usually leads to a bullish breakout. It is also slightly above the 25-day and 15-day moving averages.
Therefore, I suspect that the price will breakout once the two lines of the pennant reach a convergence zone. On the flip side, a move below $360 will invalidate this trend because it will send a signal that there are still sellers in the market.