Analysts Eye $700 as Ethereum Pushes Toward $600

Nick Chong

Last Updated: June 11, 2024 2:11 pm

3 mins read

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Ethereum has begun to bounce strongly since last week’s lows, correlating with a move higher in the price of BTC. ETH currently trades for $590, though moved extremely close to $600 earlier today.

Analysts are optimistic that the cryptocurrency will continue its ascent in the days and weeks ahead as it holds key technical levels.

Ethereum Expected to Thrust Higher

Edward Cleps, a leading crypto trader, recently noted that Ethereum is facing little macro resistance until $700. As the chart shows, aside from the support of around $360, a close key technical level is the $700 region.

$700 is approximately where the cryptocurrency topped in late 2017, along with the dead cat bounce rally in the middle of 2018. This makes it a level of technical importance of a medium to long-term time frame.

Chart of ETH's price action over the past few years iwth analysis by crypto trader Teddy Cleps. 
Source: ETHUSD from TradingView.com

Other analysts are optimistic as well. As reported previously, one crypto-asset recently shared the chart below during last week’s drop.

It shows that during the move lower, Ethereum held a key level of technical support. The technical support has held multiple times since the cryptocurrency began its latest leg higher at the start of November.

Analysts say Ethereum holding this key level will likely trigger a correction toward the upside.

Chart of ETH's price action over the past few months with an analysis by crypto trader Pierre
Chart: ETHUSD from TradingView.com

ETH2 to Reduce Inflation, Boost Prices Potentially

Messari analysts recently wrote about the potential effects of the upgrade on the Ethereum supply, arguing that the ETH2 upgrade may reduce supply inflation over time:

“Further reducing the potential issuance of ETH 2.0 until Phase 1.5 are the likely shape of the staking adoption curve, validator performance, and transaction fee burns (EIP 1559). Staking participation will likely start low and increase over time as holders gradually become more comfortable with the Beacon Chain and deposit more ETH into the deposit contract. The result of these three factors is that net issuance from ETH 2.0 could be significantly lower than what’s projected on the above chart.”

Some have even gone as far as to say that Ethereum 2.0 and EIP-1559 will have the effect of actually decreasing ETH’s supply over time.

Assuming demand for the cryptocurrency stays the same, its price should rise over time as the price naturally rises to meet market demand.