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Ethereum (ETH) seems to follow in the footsteps of Bitcoin (BTC); like BTC, ETH is expected to do better. It could very well reach a 2-year high, but it must continue to maintain itself in a crucial pivot zone. And still like Bitcoin, Ethereum could very well worsen from its big drop a week ago and trade sustainably at a price below $300.
The Ether is not yet able to recover from the big drop on September 5, 2020. It is trading at $369,59 at the time of writing. ETH is struggling to regain its opening price of around $380 on September 4, 2020.
Despite the current performance of the Ethereum, its holders seem to be hanging on to their coins; Glassnode data indeed show that the ETH balance on the exchanges reached a 6-month low on September 5, 2020.
Ethereum, like Bitcoin, is going through a difficult time; however, according to CoinMetrics data, ETH was able to exceed BTC trading volume in USD for the first time on September 6, 2020.
The value of ETH transactions on the network had reached $3.15 billion, while Bitcoin’s was $2.94 billion.
On September 9, 2020, Michael van de Poppe shared his analysis of an Ether up to 500 USD for the first time since 2018.
Ethereum reached a local high of $495 at the end of August 2020. The price then collapsed by 30% to land at the $308 level. Ethereum then tried to continue its progress, breaking through the $440 mark again. Lacking the strength to continue its momentum, ETH suffered the effects of the liquidation on September 1, 2020.
Ethereum then found support at the level of $360-$380 USD, a support that finally gave way after multiple tests.
The next major support was then at $300. For Michael van de Poppe, these corrections are quite normal in a bullish period and with such a volatile Ethereum, going from $220 to $495 in a few weeks.
The fact that the $450 could not be broken at once is also normal. The most significant indicator is that the ETH is trading above its 100 and 200 week moving averages for the first time since June 2018.
As long as the Ethereum remains in the area around the 100 and 200 week moving averages, it remains in an uptrend. This trend is accompanied by a high ($450) and a low – the future will tell us whether or not the Ethereum has already found the latter.
If it stays in this green zone, followed by a period of consolidation, the next bullish wave could propel Ethereum to the $800 level.