Ether price analysis 1 Nov: Will we see a new high this week?

Ether will try to resume its uptrend after setting a record level

Representation of an Ethereum token wired into a circuit                                 
What’s in store for Ethereum’s ether? – Photo: Shutterstock
                                

The Ethereum network’s Altair upgrade went live on 27 October and ether’s (ETH) price responded positively by rising to a new all-time high on 29 October. 

Tim Beiko, the co-ordinator for Ethereum’s protocol developers, told CNBC that Altair is important as “it shows we are able to upgrade the [proof-of-stake] PoS mechanism, and that’s a pre-condition to the migration next year. It means there’s a slightly higher chance that things will go well for the [Eth2] transition next year.”

The latest edition of the Bankless newsletter, authored by Ben Giove, an analyst with the Blockchain Education Network, shows massive growth in the Ethereum network. The total transaction fees earned by miners ballooned more than sixfold, from $321m in Q3 2020 to $1.96bn in Q3 2021.

Similarly, the total transaction value settled on the network rose to $536.48bn in Q3 2021 from $107.75bn in the comparable quarter of last year, recording a growth of 398%. The number of daily users also surged by almost a quarter year-on-year to 457,402.

Data from Block’s Data Dashboard showed that roughly 14,820 ETH was burned on 27 October, which was a new record. However, the record was short-lived as 16,800 ETH was burned on 28 October. On these two days, ether’s net emission dipped into negative clocking -1,500 ETH and -3,440 ETH respectively.

Could ether go up on the back of strong fundamentals? Read the ETH price analysis to find out.

Ether price technical analysis: weekly chart

A candlestick chart showing the weekly chart analysis of Ethereum
Ethereum technical analysis, weekly chart – Credit: Currency.com

ETH’s price rose to a new all-time high of $4,461.52 last week but gave back some of its gains to finish the week at $4,289.85, with a gain of 5.09%. The upsloping moving averages and the relative strength index (RSI) near the overbought zone suggest the path of least resistance is to the upside.

If the price sustains above $4,461.52, the buying could accelerate and push the ETH/USD pair to the psychological resistance at $5,000. This level may act as a major obstacle but if the bulls arrest the subsequent decline above $4,400, the possibility of the resumption of the uptrend is high.

Conversely, several traders may book profits if the pair turns down from the current level and sustains below $4,000. The pair could then drop to the 20-week exponential moving average (EMA). A break and close below this support will signal that the pair may have topped out in the short term. 

Ether price technical analysis: daily chart

A candlestick chart showing the daily chart analysis of Ethereum
Ethereum technical analysis, daily chart – Credit: Currency.com

ETH’s price bounced off the 20-day EMA on 28 October, indicating that sentiment remains bullish and traders are buying on every minor dip. The bulls again bought the dip today as seen from the long tail on the day’s candlestick.

The 20-day EMA is sloping up and the RSI is in the positive zone, indicating that bulls are in command. A break and close above $4,461.52 could signal the resumption of the uptrend.

The first sign of weakness will be a break and close below the 20-day EMA. Such a move will suggest that supply exceeds demand. The pair could first decline to $3,892.10 and then to the 50-day simple moving average (SMA).

Ether buy or sell this week

Ether’s price analysis shows that bulls are buying on dips to the 20-day EMA. The buyers are likely to make one more attempt to resume the uptrend shortly. If the price sustains above $4,461.52, the bullish momentum could pick up further. This positive view will invalidate in the short term if the price breaks and closes below the 20-day EMA.

The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks and you should do your own research or contact your financial adviser before arriving at a decision.

Ethereum to US Dollar
Daily change
4042.32
Low: 4028.93
High: 4114.53

Further reading

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