• Ethereum (ETH) reached a five-month high of $1,700 on Thursday, February 2.
• The current spike in ETH price has witnessed an increase in profit-taking to a two-year high.
• Analysts are expecting the ETH price to reach $1,800 or higher this month in February but it will depend on how ETH behaves as it approaches the pattern deadline by mid-February.
Ethereum Hits $1,700
Ethereum (ETH) made a strong move at $1,700 for the first time since September 12 and is currently facing strong resistance at $1,680. Last month of Jan saw a 40 percent surge of ETH price along with Bitcoin’s gains.
Technical Analysis
Currently, Ethereum is forming an ascending triangle pattern which is considered bullish in nature. With overall improvement in investor sentiment towards ETH, analysts are expecting the price to hit $1,800 or even higher this month.
Bearish Indicators
The derivatives market of Ethereum shows lack of confidence from leveraged buyers as futures trade at a discount to spot market prices. Profit taking has also reached its highest levels in two years since February 2021.
Resistance Level
ETH is facing resistance over the last few weeks at around $1,680 level and if failed to break past these levels repeatedly then bears have upper hand to cancel out the bullish triangle pattern formed by ETH prices .
Conclusion
Retail investors should be cautious here as negative news flow coupled with failure to break past resistance level could affect ETH prices and put bearish pressure on it.