Ethereum (ETH) Price Rally
• Ethereum (ETH) is trading close to $1,700 for the first time in five months.
• ETH is currently facing strong resistance at $1,680 and forming an ascending triangle pattern.
• Profit-taking has jumped to a two-year high recently, showing bearish sentiment of traders.
Ethereum Reaches $1,700
Ethereum (ETH) made a strong move at the price of $1,700 for the first time in five months on Thursday, February 2nd. However, it failed to hold above this level and is now facing strong resistance around $1,680. The world’s second-largest cryptocurrency has had a solid run since January with its price increasing by 40 percent over this period.
Technical Analysis
On the technical chart, ETH is currently forming an ascending triangle pattern with the profit-taking jumping to a two-year high recently. This shows that traders are not expecting any immediate positive price action here despite the overall improvement in investor sentiment towards ETH. Analysts expect ETH could reach $1,800 or even higher this month if it breaks past the current resistance levels of $1,680.
Futures Premium Indicators
Looking at the Ethereum futures market data shows that traders have failed to enter into neutral-to-bullish 4 percent threshold which could indicate bearish sentiments among investors as they take profits and reduce their exposure to ETH. Currently there exists 3.5 percent premium which is only a moderate improvement from two weeks ago levels.
Conclusion
Despite its recent surge past $1,700 mark for the first time since September 12th 2020 Ethereum couldn’t sustain above these levels and continues facing strong resistance at $1680 currently due to negative newsflow and profit taking activities among investors turning up bearish sentiment in markets recently as seen from derivatives data points as well as futures premiums indicators suggesting caution for retail investors before making any new investments here at least until mid February when ascending triangle pattern deadline passes by.