Ether prices could climb 20% as cryptocurrencies rally. Here’s how.
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Ether prices recently overtook bitcoin. It continued on Friday.
The time of dreams
The cryptocurrency ether just broke above a key technical level and has the potential to rise another 20%, according to an analyst.
Ether
rose nearly 6% in the past 24 hours to near $3,200, trading at the highest levels seen in over a month. The token that underpins the Ethereum blockchain network has failed to consolidate gains at this level since the start of 2022.
Ether’s price rally on Friday was accompanied by similar action in other cryptocurrencies, and it continued its recent trend of outperforming Bitcoin, the leading digital asset.
That might just be the start, according to Katie Stockton, founder and managing partner of technical research group Fairlead Strategies.
Ether recently broke above a key resistance level around $3,000, Stockton said, following the lead of
Bitcoin,
which broke above its equivalent resistance level earlier this month. Ether consolidated its gains above $3,000 on Wednesday.
“The breakout reverses the medium-term downtrend, and is associated with positive short-term momentum and a bullish ‘pop’ in the daily Stochastics, supporting a short-term bullish follow-up,” Stockton said.
The Fairlead team sees resistance near the $3,500 mark on the upside, which is close to the token’s 200-day moving average. If a “risky” mood persists in the markets, then a rise to $3,825 “may be a realistic target,” Stockton said, based on his technical analysis.
Ether’s all-time high is $4,865, reached in early November 2021. A move up to $3,825 would represent a gain of more than 20% from Friday’s levels.
Write to Jack Denton at [email protected]