Ethereum ETH/USD, the second-largest cryptocurrency by market cap, hit a new all-time high of $2,199 earlier today.
What Happened: The cryptocurrency price gained 2.15% overnight after this weekend saw two consecutive days of ETH trading above its crucial resistance level of $2000.
Analysts from crypto exchange Kraken called this price barrier “psychologically significant” in their March 2021 Market Recap and Outlook report.
They also estimated that the next major resistance level for ETH could be $2,700 based on historical data.
“When plotting logarithmic regression lines against ETH’s historical price action, one will find that ETH’s next big level of resistance resides around $2,700. Furthermore, one can identify various levels where ETH could top out this market cycle. For instance, a move up to the logarithmic regression line that coincides with ETH’s previous market cycle top would imply a $15,283 Ether.”
Why It Matters: So far, the second quarter of the year is yet to deliver a negative return for ETH, as the 5-year average 2Q return stands at 141%.
“Should we see history repeat and ETH advanced +141% in 2Q, the price of ETH would be $4,643. Using the median 2Q return of +71%, this figure would come in at $3,281,” noted the analysts.
Apart from the historical fundamentals touched upon by the analysts from Kraken Intelligence, other recent on-chain indicators have also proved bullish for Ethereum.
Data from on-chain metrics provider Glassnode shows that the number of addresses holding ETH reached a new all-time high of 57 million – a sign that the number of people holding the cryptocurrency is on the rise.
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