Ethereum has started to rise sharply since last week’s lows, which correlates with a rise in the price of BTC. ETH is currently trading at USD 590, although it came extremely close to USD 600 earlier today.
Analysts are optimistic that the cryptocurrency will continue to rise in the coming days and weeks as it maintains significant technical levels.
Related reading: This is why Ethereum’s DeFi market can be near a bottom
Ethereum is expected to push higher
Edward Cleps, a leading crypto trader, recently noted that Ethereum faces little macro resistance up to USD 700. As the chart shows, aside from the support near USD 360, a key technical level is the USD 700 region.
$ 700 is roughly where the cryptocurrency peaked in late 2017, along with the dead cat bounce rally in mid-2018, making it a medium to long-term level of technical importance.
Chart of ETH's price action over the past few years iwth analysis by crypto trader Teddy Cleps. Source: ETHUSD from TradingView.com
Other analysts are also optimistic. As previously reported, a crypto asset recently shared the chart below during last week’s decline.
It shows that during the lower move, Ethereum had a significant level of technical support. The tech support has been held several times since the cryptocurrency started its last leg higher in early November.
Analysts say that with this key level, Ethereum is likely to trigger a positive correction.
Chart of ETH's price action over the past few months with an analysis by crypto trader Pierre Chart: ETHUSD from TradingView.com
Related reading: Tyler Winklevoss: There will be a “Tsunami” of capital for Bitcoin
ETH2 to reduce inflation, potentially increase prices
Messari analysts recently wrote about the possible effects of the upgrade on Ethereum supply, arguing that the ETH2 upgrade could reduce supply inflation over time:
“Further reducing the potential issuance of ETH 2.0 to phase 1.5 are the likely shape of the strike-acceptance curve, validator performance and transaction cost burns (EIP 1559). Participation in the stake is likely to start low and increase over time as holders gradually become more familiar with the Beacon Chain and deposit more ETH into the deposit contract. As a result of these three factors, the net issuance of ETH 2.0 can be significantly lower than what is projected in the chart above. “
Some have even gone so far as to say that Ethereum 2.0 and EIP-1559 will have the effect of actually diminishing the supply of ETH over time.
Assuming the demand for the cryptocurrency remains the same, the price should increase over time as the price naturally rises to meet market demand.
Related reading: 3 Bitcoin On-Chain Trends Show A Macro Bull Market Is Brewing
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com Analysts Eye $700 as Ethereum Pushes Toward $600