Ether prices have been showing substantial strength lately, surpassing $4,000 for the first time late last night and then trading north of that level for most of the time since then.
The digital currency rallied to as much as $4,213.46 early this afternoon, reaching a fresh record price, CoinDesk data shows.
At the time of this writing, the cryptocurrency had pulled back somewhat, and was trading close to $3,950, additional CoinDesk figures reveal.[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Should ether prices push lower, they might head to $3,500 next, a level that several technical analysts identified as providing key support.
“Support levels will be found at $3,500 and $2,800,” said Mark Warner, head of trading at BCB Group.
Jon Pearlstone, publisher of the newsletter CryptoPatterns, also weighed in, indicating that:
“First support would be the $3,500 level, which if broken would lead to a test of stronger support at $2,500.”
Key Resistance Levels
Should ether resume its upward climb, it will likely face resistance near $4,250, say market observers.
Pearlstone, in particular, noted that after rising above $3,500, the “$4,250 range” became the next area of important resistance.
If the digital currency can surpass that particular price level, “traders should keep an eye on new resistance forming at the $4,500 and $5,000 levels,” said John Iadeluca, founder & CEO of multi-strategy fund Banz Capital.
Warner predicted that ether would encounter resistance at these exact same price levels.
Going forward, Warner provided an optimistic outlook, focusing on the closely watched ratio between the price of ether and bitcoin, the world’s largest currency by market value.
“ETHBTC may provide some price guidance, should BTCUSD remain in its current range,” he said.
“The ETHBTC price in mid-May 2018 peaked around 0.084, which would place ETHUSD in the $5,000 area.”
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.