Ethereum’s BlackRock Trust
BlackRock filed to launch an Ethereum (ETH) trust on November 9. The price increased above $2,000 shortly afterward but fell over the weekend. Despite the increase, ETH failed to reach a new yearly high by just $4. Will it be possible this week?
Ethereum Rallies After Breakout
The technical analysis from the daily time frame shows that the Ethereum price broke out from a descending resistance trendline on November 5. At the time of the breakout, the trendline had been in place for more than 200 days. After breaking out, ETH reached a high of $2,136 before falling slightly. The high was slightly below the yearly high of $2,140. The ETH price fell afterward and currently trades at $2,060.
During the increase, the Grayscale Ethereum Fund discount decreased to 14%. This is a significant turnaround since the discount was 60% earlier in the year, and could have occurred because of Blackrock filing for a trust.
What Are the Analysts Saying?
Cryptocurrency traders on X have a bullish outlook for the future of the ETH price. EmilyKols69 believes that the ETH price trend is bullish since the psychological resistance of $2,000 has been shattered. 52kSkew gives a similar outlook and notes the importance of the $2,000 area. Pentosh1 believes that the weekly chart indicates that the price will reach a new yearly high since it has not swept its previous highs yet.
ETH Price Prediction: Will New Yearly High Be Reached?
Utilizing the Elliott Wave theory, technical analysts study recurring long-term price patterns and investor psychology to ascertain trend directions. A notably positive outlook is evident in the weekly analysis, corresponding with Ethereum’s price breaking out from long-term horizontal resistance at $1,950.
The increase is also supported by the weekly RSI, which has just moved above 50. Giving waves one and three a 1:1.61 ratio leads to a high of $3,250. This is very close to the long-term resistance at $3,500. Reaching it would require an Ethereum price upward movement of 65%.
Hot Take
Despite being in overbought territory, there are no indications of a bearish divergence that could trigger a decline in Ethereum’s price movement.
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