Ethereum is Gearing Up for a Move Past $400; Here’s What Will Drive It Higher
Ethereum has seen some intense strength throughout the past couple of weeks, and the strong uptrend it is currently caught within isn’t showing any clear signs of coming to an end anytime soon.
As it pushes up against its high time frame resistance, analysts are widely noting that it could be well-positioned to see further upside in the near-term due to its strong market structure.
One analyst in particular is noting that the cryptocurrency is now poised to reach $400 due to its break above multiple key resistance levels.
As for what could help it continue outperforming the aggregated cryptocurrency market, one respected investor is pointing to growing narratives surrounding ETH 2.0 as a source of strength.
He believes that as the upgrade approaches, people will become increasingly bullish on Ethereum – thus leading them to increase their exposure.
This could provide it with a continuous stream of buying pressure that helps to lift it higher.
Ethereum Rallies Higher as Analysts Eye Move to $400
At the time of writing, Ethereum is trading up over 4% at its current price of $363.
Overnight, it did face some intense selling pressure throughout the mid-$350 region, although bulls have since been able to shatter through this resistance.
As for where it may trend next, analysts are widely noting that it is poised to see further upside in the days and weeks ahead.
Because sellers have yet to garner enough strength to catalyze any type of intense downtrend, the cryptocurrency may continue pushing higher in the near-term.
One popular crypto-focused analyst mused this possibility in a recent tweet, explaining that he is now watching for a move up to $400.
“Can we just send ETH to $400 already,” he asked while pointing to the chart seen below.
Image Courtesy of Josh Rager. Chart via TradingView.
ETH 2.0 Narratives May Continue Boosting Its Price Action
One fund manager believes that Ethereum may continue outperforming Bitcoin in the near-term due to the bullish narratives surrounding it.
While speaking on this topic, he specifically points to ETH 2.0 approaching as one factor that could continue helping to boost the cryptocurrency.
He also notes that future phases of ETH 2.0 in the next 2-3 years will continue being catalysts for further growth.
“The strong move in Ethereum has to do with the upcoming ETH 2.0 launch which is a major catalyst. Every phase of ETH 2.0 over the next 2-3 years brings Ethereum closer to its final state and will be catalysts for ETH.”
There’s no question that the 2.0 upgrade has been sparking an accumulation trend amongst Ethereum investors.
For it to continue doing so, however, the upgrades must take place without any major delays.
Featured image from Unsplash. Charts and pricing data from TradingView.