Over the past few weeks, Ethereum (ETH) has exploded to the upside. The second-largest cryptocurrency by market capitalization, since bottoming around $117 in December 2017, has surged higher by over 100%, buoyed by buying pressure from investors looking to capitalize on the impending market cycle.
In the past few days especially, Ethereum has gone vertical. Look to the right side of the chart below, which shows that in the past day or two alone, the asset has rallied from $220 to as high as $257 — a gain of 17%.
While this is already ludicrous in and of itself, some analysts believe that more upside is possible for the leading altcoin, citing technical analysis and fundamental factors.
Ethereum Could Soon Surge Even Higher, Analysts Say
As observed in a recent tweet from well-followed cryptocurrency trader Galaxy, the Moving Average Convergence Divergence (MACD) for Ethereum’s one-month chart has flipped from a bear to bull trend for the first time in two years, for the first time since October 2017.
More specifically, after nearly two years of a downtrend, Ethereum’s monthly MACD in January flipped green, then followed that up by printing another green candle for the ongoing month.
A similar rally would take ETH above $1,000 in the coming months.
This comes shortly after Michael Van De Poppe, a full-time trader at the Amsterdam Stock Exchange, offered a more muted analysis. He said that Ethereum turning $220 into support will likely act as a catalyst for a massive 50% rally higher.
More specifically, the analyst said that once $220 is confirmed as a support by a daily and weekly close, “we can aim for $360 as [the] next major resistance.”
My bigger picture chart posted on $ETH here at TradingView:https://t.co/RhGuAUvANz
I think we’ve bottomed out and we’re aiming for a possible new higher high.
Breaking $220 -> $360.
Clearing $360 and I’m aiming $500+.Let’s see.
— Crypto Michaël (@CryptoMichNL) February 6, 2020
Related Reading: Why a Crazy Profitable Bitcoin Whale is Warning of a Brutal Crash
Its Booming Fundamentals
The positive technical backdrop has been underscored by the blockchain’s positive fundamental trend.
Per previous reports from NewsBTC, JP Morgan & Chase is purportedly looking to merge its blockchain unit called Quorum with ConsenSys, the New York-based Ethereum-centric development studio that is behind projects like Infura and MetaMask.
Prominent cryptocurrency trader and commentator Satoshi Flipper said the following on the potential business deal, expressing how bullish it is:
So why is this so bullish for Ethereum? Because cash is king and JPMorgan has much of it. With the pending release of 2.0, JPMorgan could desire an increased presence in the enterprise blockchain arena.
Also, Ethereum-based decentralized finance (DeFi) recently reached $1 billion in locked value, a sum that analysts say prove that financial services on the blockchain has become Ethereum’s killer use case.
Related Reading: Indicator That Preceded 1,000% Rally in Ripple’s XRP Just Flashed Again
Featured Image from Shutterstock
