Ethereum price crossed the $500 level for the first time in more than 3 years ahead of the launch of ETH 2.0. The currency is up by 6.85% today while other digital assets like Bitcoin and Ripple are up by 3.45% and 0.45%, respectively.
That Ethereum was going to cross $500 was a matter of when not if considering that that the ETH 2.0 update is just a few days to go. Indeed, I predicted that the ETH coin would cross this level a few weeks ago. And last week, I conducted a technical analysis of Ethereum on the weekly chart and concluded that the next level to watch will be $700.
The current upgrade and the overall bullish nature of cryptocurrencies is the biggest driver for the currency’s rally. Indeed, the currency has now risen by more than 455% since its lowest point this year.
In addition to the upgrade, another bullish factor has been the weaker dollar. The dollar index has dropped by more than 10% from its year-to-date high of $103 and analysts believe that the downward trend will go on. So, let’s do another technical analysis and see whether Ethereum price has more room to run.
Ethereum price technical analysis
Turning to the daily chart, we see that Ethereum has been on a strong rally recently. However, in the past few days, the price has faced a strong resistance below $500 because of indecision in the market. Today, it managed to move above the final resistance level of $490, which was the final hurdle before moving to $500.
Therefore, with fear of missing out (FOMO) setting in, I suspect that the price will continue rising, with the next level to watch being $600 followed by $700. However, another drop below $400 will invalidate this trend.
ETH technical chart