- Ethereum has consolidated since hitting the $465 highs last week. It is neither up nor down in the past 24 hours.
- Still, analysts say that Ethereum is primed to move even higher in the weeks ahead.
- An analyst noted that the cryptocurrency is currently in the midst of a bullish pennant pattern, which could trigger a move above $500.
Ethereum Primed to See Strong Rally Higher
Ethereum has consolidated since hitting the $465 highs last week. The coin currently trades for $445 and is neither up nor down in the past 24 hours.
This pennant suggests that once Ethereum breaks the upper range of the pennant, it will move to $500 and potentially beyond.
Chart of ETH's price action over the past few months with an analysis by crypto trader Crypto Rand (@Crypto_Rand on Twitter). Source: ETHUSD from TradingView.com
Ethereum is also expected to move toward $800 as it turns the $400 region into support. A leading crypto-asset analyst recently shared the chart seen below, which shows that there is little macro resistance until $800-900:
“Stop charting ETH against BTC it under performs USD. HTF trend is heavily bullish going into 2021, I really hope we get the chance to buy around $350 again at some point before we really start to see price clear $600 and $800… I have a large USD position to spend.”
Chart of ETH's price action over the past three years with analysis by crypto trader Cactus (@Thecryptocactus on Twitter). Source; ETHUSD from TradingView.com
Fundamentals Also Bullish
Australia’s Reserve Bank recently announced it will be using Ethereum technology for its CBDC pilot test:
“The Reserve Bank today announced that it is partnering with Commonwealth Bank, National Australia Bank, Perpetual and ConsenSys Software, a blockchain technology company, on a collaborative project to explore the potential use and implications of a wholesale form of central bank digital currency (CBDC) using distributed ledger technology (DLT)… The project will involve the development of a proof-of-concept (POC) for the issuance of a tokenised form of CBDC that can be used by wholesale market participants for the funding, settlement and repayment of a tokenised syndicated loan on an Ethereum-based DLT platform.”
The Reserve Bank will also be partnering with ConsenSys, the Ethereum-focused development studio, to work on this project. Of course, this is not a sign that they will actually be using the formal Ethereum blockchain but is a validation of the technology that underpins it.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bullish Pennant Predicts Ethereum Will Soon Shoot Towards $500