Ethereum (ETH) Price Today (January 29): Best Forecast and Analysis
|Ethereum (ETH) Price Today (January 29). Photo: SFOX|
Daily analysis of Ethereum price - January 29th, 2021
Ethereum slid by 9.28% on Wednesday. Reversing a 3.79% gain from Tuesday, Ethereum ended the day at $1,240.96.
A mixed start to the day saw Ethereum rise to an early morning intraday high of $1,375.91 before hitting reverse, as cited by FX Empire.
Falling short of the first major resistance level at $1,416, Ethereum slid to an early afternoon intraday low of $1,206.05.
The sell-off saw Ethereum fall through the first major support level at $1,283 before finding support. Steering clear of sub-$1,200 support levels, Ethereum revisited $1,300 levels before falling back into the deep red.
At the time of writing, Ethereum was up by 2.16% to $1,267.71. A mixed start to the day saw Ethereum fall to an early morning low of $1,220.08 before rising to a high of $1,274.31. Ethereum left the major support and resistance levels untested early on.
Ethereum is traded at the level of 1295.58 and continues to move as part of the growth and the ascending channel. The capitalization of the Ethereum cryptocurrency at the time of the publication of the forecast is $150,274,489,112. Moving averages indicate a short-term bullish trend for Ethereum. Prices are testing the areas between the signal lines again, which indicates pressure from buyers and a potential rise in the asset value from the current levels. At the moment, we should expect an attempt to correct the value of the coin and test the support level near the area of 1140.55. Where can we expect a rebound again and a continuation of the rise in the Ethereum rate with a potential target above the level of $1625.05
At the time of writing, Ethereum was risen by 3,37% to $1, 319.51:
Ethereum Forecast and ETH/USD Analysis January 29, 2021
An additional signal in favor of raising the ETH/USD quotes will be a test of the trend line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the ascending channel. Cancellation of the option for the growth of the cryptocurrency will be a fall and a breakdown of the level of 1025.05.
According to Forex24, this will indicate a breakdown of the support area and a continuation of the fall in ETH/USD quotes below the level of 765.05. With the breakdown of the resistance area and closing of quotations above the level of 1405.00, we should expect confirmation of the development of the rise in Ethereum.
Ethereum Forecast and ETH/USD Analysis January 29, 2021, implies an attempt to correct and test the support area near the level of 1140.55. Where can we expect a rebound and continued growth of the ETH/USD cryptocurrency to the area above the level of 1625.05?
An additional signal in favor of the rise of Ethereum will be a test of the trend line on the relative strength index (RSI). Cancellation of the digital currency growth option will be a breakdown of the 1025.05 area. This will indicate a continued fall with a potential target below the level of 765.05.
Ethereum price can reach $2,000 as its scarcity continues to increase
Despite the massive increase in price experienced by Ethereum since August 2020, the number of ETH coins inside exchanges has declined significantly. This percentage has dropped from 26.2% of the circulating supply to only 20.7% currently.
|Ethereum supply on exchanges. Photo: FX Street|
This metric shows that investors are withdrawing their coins from exchanges to either lock them into Defi protocols or to hold. The Eth2 deposit contract holds 2.85 million ETH and there is currently 7.09 million ETH locked in Defi projects, which means close to 10 million Ethereum are locked, representing close to 10% of the circulating supply.
Similarly, the number of large holders with 10,000 to 100,000 ETH coins ($13,000,000 to $130,000,000) has increased from 961 on October 2020, to 1,080 currently. Again indicating that whales are interested in accumulating ETH despite its price growing.
On the 4-hour chart, Ethereum has established an ascending triangle pattern with the resistance trendline located at $1,430. A breakout above this point can drive ETH up to $1,900 or higher.
The likelihood of Ethereum cracking that resistance level seems quite high according to the In/Out of the Money Around Price (IOMAP) chart which shows very weak resistance above $1,340, but a lot of support between $1,300 and $1,340 with a volume of almost 9 million ETH, purchased by 464,000 addresses.
Nonetheless, the TD Sequential indicator is close to presenting a sell signal on the weekly chart. This could stop the bulls from pushing Ethereum to new all-time highs driving it to re-test the psychological level at $1,000, FX Street cites.
* For more updates and predictions of daily Ethereum price and other cryptocurrencies prices, please click here!
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