Ethereum price appears firmly on track for a $5k+ valuation

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The Ethereum price has trad­ed above $4,700 for the first time ever this morn­ing, inch­ing ever clos­er to the elu­sive $5,000. Ethereum (ETH) is trad­ing at $4,693 (+1.63%), up around 9.4% in Novem­ber, and +550% year-to-date. ETH’s cur­rent mar­ket cap is $550.5 bil­lion, account­ing for 19.6% of the total cryp­to mar­ket value. 

Ethereum has out­per­formed Bit­coin (BTC) in Novem­ber, mak­ing sev­er­al new highs in the process. How­ev­er, unlike the bull run at the start of the year, the recent ral­ly has been remark­ably uni­form. Despite ETH increas­ing around 75% since the mid­dle of Sep­tem­ber, we are yet to expe­ri­ence a par­a­bol­ic impulse move high­er. In fact, the price action resem­bles more of a march than a charge which sug­gests we are some way off the top. Typ­i­cal­ly cycle-tops, espe­cial­ly in cryp­to, are defined by upside FOMO grabs (think, Bit­coin 2017, or Car­dano in Sep­tem­ber). How­ev­er, there are signs that sug­gest a par­a­bol­ic exten­sion high­er is brewing.

ETH Price Forecast

Look­ing at the dai­ly chart we see the Ethereum price is test­ing a trend­line from the bounce that fol­lowed the crash in May. A sim­i­lar set-up occurred in April when ETH burst through long-term trend resis­tance at $3,100. A peri­od of price dis­cov­ery fol­lowed, and with­in a month, Ethereum was trad­ing 40% high­er at the for­mer all-time high of $4,384.

Should we see a sim­i­lar-sized move from here, it projects ETH will reach the $6,400-$6,500 range. Fur­ther­more, despite ETH’s per­for­mance from Sep­tem­ber, the Rel­a­tive Index Strength Index reads 67.66 and shows no signs of lethar­gy. There­fore, in my opin­ion, the price has more room to run before becom­ing stretched.

If the Ethereum price remains above the for­mer ATH at $4,384, upside momen­tum should increase. How­ev­er, if ETH los­es that sup­port lev­el, a peri­od of con­sol­i­da­tion may fol­low. Nonethe­less, it’s hard to build a bear­ish argu­ment con­sid­er­ing the cur­rent back­drop. In my opin­ion, only a close below $4,000 would dent sen­ti­ment enough to cause a cor­rec­tion. There­fore, I am bull­ish on ETH with a near term price tar­get of $5k and $6,500 year-end. How­ev­er, a close below $4,000 inval­i­dates this view. 

EThereum Price Chart (Daily)

ethereum chart

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