Today, the cryptocurrency Ethereum breaks its previous ATH at $525 and marches on to $640. This is in line with our December 9 prediction, where our TA expected it to hit an uptrend if it maintained its support. We continue to hold bullish views for Ethereum come Q1 2018, with the advent of NASDAQ’s Ethereum futures launch.
The price surge can be attributed to ETH’s underlying asset and fundamentals: as of today, it processes more than 800,000 transactions per day. This is almost twice the number of the transactions Bitcoin is able to process on a daily basis.
Fundamentals aside, ETH’s recent rally can be explained using technical analysis. It recently hit the long term bottom support of $430. Signs of ETH’s new rally emerged around December 10. At that point, ETH was trading around 38.2% Fib retracement level of the last decline from $497 to $422. A smaller resistance point at 50% fib (from the December 8 decline) sat at around $460. This resistance was broken in December 11 and opened new doors for higher highs.