Ethereum Reaches $1,700
• Ethereum (ETH) has had a solid run-up since the beginning of 2023, rising to $1,700 for the first time in five months.
• Despite this price surge, ETH is facing strong resistance at $1,680 and traders of the ETH futures contract have failed to enter the neutral-to-bullish 4 percent threshold.
• Profit-taking has also reached a two year high recently.
Ethereum (ETH) has been making steady gains since the start of 2023 with its price increasing by 40 percent in January alone. This momentum continued on February 2nd when ETH reached $1,700 for the first time in five months since September 12th. However, due to strong resistance at $1,680 it failed to stay above these levels for long. At press time ETH was trading at a price of $1,638 and had a market cap of $200 billion. On technical charts ETH is forming an ascending triangle pattern which if successful could see its price reach as high as $1,800 or higher this month.
The derivatives market shows that currently there is a lack of confidence from leveraged buyers hinting at bearish sentiment with annualized two-month futures premium trading below 4 percent – it should typically be between 4 percent and 8 percent in healthy markets. Additionally profit taking has jumped to its highest level since February 2021 giving bears an upper hand against bulls.
Retail investors are advised to be cautious as repeated failures to break past resistance coupled with negative newsflow could give bears an edge over bulls cancelling out the bullish triangle pattern being formed by ETH on technical charts.
Overall investor sentiment towards ETH is improving but whether it will reach levels beyond $1700 remains uncertain depending on how it performs in mid-February when the pattern deadline arrives..