The Ethereum price recovery is well underway. And this time around, ETH may have enough gas in the tank to go higher, much higher.
Ethereum (ETH) is trading at $2,312, higher by $123 (+5.69%).
This morning, Ethereum is on its way to printing a sixth consecutive green candle on the daily chart. The remarkable reversal from last week’s low has seen ETH gain 20% in the last seven trading days. Furthermore, bulls will be encouraged the Ethereum price performance has outpaced all other top ten cryptocurrencies.
This impressive run of form has raised Ethereum’s market cap by more than $65 billion to $269b over the last week. However, that figure may be set to climb even more.
Over the weekend, City AM broke the news that Amazon (NASDAQ: AMZN) has accelerated plans to accept Bitcoin payments. Furthermore, an insider at the online retailer revealed Ethereum transactions could follow.
“Ethereum, Cardano and Bitcoin Cash will be next in line before they bring about eight of the most popular cryptocurrencies online.”
The resulting rally has lifted ETH above the significant resistance of the 200-day moving average, and yesterday ETH closed above the indicator at $2,110 for the first time since May 26th.
This positive development has the bulls eyeing the psychological $3,000 threshold. So can the Ethereum price rally that started earlier this year finally resume?
ETH price forecast
The daily chart paints a positive picture of the price. ETH reversed perfectly, from the top of the ‘buying zone’ between $1,400-$1,650.
Now the price has reclaimed the 50 and 200 DMA’s, the next resistance level is seen at the 100 DMA at $2,534. Penetration of the 100 sets the price up perfectly for an extension to $3,000.
However, the low trading volume is worrying. And before I get over-confident with my Ethereum price prediction, I would prefer to see increased activity. Of course, it’s possible when traders in Europe and later, the US wake up, they will chase the price higher. Therefore, it will be interesting to see how the price reacts in a few hours.
Despite the positive outlook, until ETH closes above $2,534, caution is warranted. Furthermore, should the price lose the support of the 200 DMA at $2,110, my bullish view becomes invalid.
Although, I fully expect follow-through buying later today and predict that $3,000 could arrive sometime this week.