Why $2,000 is the most significant level for Ethereum (2.0)
Ethereum made intra-day highs that reached beyond $2,000 on Saturday and Sunday (August 13, 14) but both times the break was extremely short-lived re-affirming that $2,000 is more than just a psychological level of resistance. In this piece, I will outline the technical but more importantly the historical significance of the current level of major resistance in Ethereum, $2,000.
The level of $2,000 in Ethereum is as important as $20,000 is for Bitcoin, these levels represent previous ceilings in these markets and when broken above a parabolic rally followed immediately after.
Back in February 2021 Ethereum flirted with $2,000 but was swiftly rejected hitting a low below $1,300 the very next week. At the start of March 2021, Ethereum had another failed attempt at a convincing (weekly) close above $2k. However, at the end of the same month Ethereum finally cracked the ceiling at $2k and what followed was a price appreciation of greater than 2x in around 2 months.
As of 6 PM ET, Ethereum is trading at around $1,870 after posting its first gain this week of 1.79% on the day. Ethereum is at the bottom of the upward trend channel that it has been trading in since the start of July. I am betting that Ethereum will remain in the upward trend and as such, we shouldn’t see much more if any draw down tomorrow and over the weekend.