Watch These Ether Price Levels After Cryptocurrency Surges to 3-Month High
Ether (ETHUSD), the native cryptocurrency of the Ethereum blockchain, surged Monday to its highest levels in more than three months, boosted by optimism about the prospects for a favorable regulatory outlook under the Trump Administration and record inflows into recently launched spot Ether exchange traded funds (ETFs).
In particular, investors believe that reduced regulatory barriers could benefit Ethereum by increasing the adoption of decentralized finance (DeFi), an emerging peer-to-peer financial system that uses the cryptocurrency’s blockchain to execute transactions using smart contracts.
Spot Ether ETFs recorded net inflows of more than $215 million in the three days after the election, according to data from crypto analytics site CoinGlass, their highest three-day cumulative windfall since launching in late July.
Ether has risen roughly 38% over the past week, trading at around $3,320 recently and pushing the year-to-date gain to around 45%. Despite the recent surge, Ether has significantly underperformed bitcoin (BTCUSD), which has more than doubled in price since the start of the year.
Below, we take a closer look at Ether’s chart and use technical analysis to locate important price levels to watch out for.
After a period of prolonged accumulation, Ether’s price broke out above a six-month descending channel late last week on above-average trading volume, with gains accelerating over the weekend.
While the relative strength index (RSI) confirms the cryptocurrency’s bullish momentum with a reading above the 70 threshold, the indicator also flashes overbought conditions that could trigger near-term price fluctuations.
Let’s identify several key technical levels on Ether’s chart that investors may be
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