Ethereum has enjoyed a spectacular start to the month of February. Climbing to a new high of $1,543 in the early trading hours Wednesday. Hours later, Ether smashed the $1,600 mark, touching another new all-time high ($1,651) and breaking a key resistance level.
Ethereum is up 1,700% in the past 12 months, trading for less than $100 in March 2020. The second-largest cryptocurrency by market cap is also up 26% over the past seven days.
Ether is said to be in a “price discovery mode” and could surge past the $2,000 mark in the coming weeks. As there is little to no resistance in sight. The formation of an ascending triangle pattern allowed the bulls to take control over the price, following a break past the x-axis.
The patterns stand out for giving traders exact price targets following a breakout. This target is measured from the highest to the lowest points of the triangle. In this case, ETH price has a long way before hitting the 22% upswing to $1,800.
Meanwhile, Ethereum’s price is teetering at $1,540 amid a building bullish momentum. The bullish narrative can be confirmed by the Moving Average Convergence Divergence (MACD).
The MACD line (blue) recently crossed above the signal line, encouraging traders to buy more of Ethereum. This could be a strategic trading strategy, but it is best to incorporate other indicators as well.
Ethereum May Fail To Rally to $1,800
If the uptrend fails to break above the near term key level of $1,600. The price of Ethereum may fail to rally to $1,800. On the other hand, support must be established above $1,500 to avoid a correction to $1,400 or $1,300.
With its latest price moves, Gemini co-founder Tyler Winklevoss went on the record of saying Ethereum is the most undervalued cryptocurrency. “Ether $ETH starting to move. It’s easily been the most undervalued crypto lately,” he tweeted.
Winklevoss is a longtime proponent of Ethereum. Back in December 2020 when ETH was trading at $735, he stated that the cryptocurrency was undervalued and that its price was a steal.
Winklevoss also stated that Ethereum’s performance helped its value surge more than Bitcoin percentage-wise despite being unable to mimic the leading cryptocurrency in registering a new all-time high.
Decentralized finance has been a major player in the growth of the Ethereum blockchain. Institutional interest in Ether is also on the rise as many institutional investors see the digital asset as a store of value thanks to its strong performance and returns.