Ethereum Price Could Surge 64% To $360: Here's How

Ethereum (ETH) followed Bitcoin's five-day rally wherein it traded from $188 on Wednesday and went up to as high as $230 on Sunday. Both the top two cryptocurrencies are leading the rest of the market with gains since last month.

Ethereum, so far, is already up 23 percent this month and is currently exchangeable for $220. Still, analysts believe that the top altcoin could surge 64 percent more, and the $230 resistance is ETH's current impediment to a $360 price.

ETH, like Bitcoin, is trading comfortably above the 50-day SMA and 200-day SMA and has broked out of the multi-year trendline drawn on log chart extending from January 2018.

The implications brought about by the amalgam of technical factors point to bullishness for the second-best crypto, but will still likely mimic the movement of its most popular counterpart. BTC has finally reached a five-figure value at $10,000 on Sunday after months of trading below it, but ETH necessitates the king of cryptos to remain above it so it could realize further gains itself.

Strong Fundamentals

It's not only the bullish momentum in BTC that's propelling higher prices for ETH, but the strong fundamentals of Ethereum is also a driving force of its rally. ETH transactions, according to Skew data, increased 122 percent since the start of the year, and it surpassed BTC, which only grew 73 percent.

Open interest for ETH is also at its six-month high.

Moreover, the increasing use of decentralized finance (DeFi) that relies on Ethereum's economic bandwidth is also on the verge of exceeding $1 billion of capital locked in active smart contracts, per DeFi Pulse. This indicates that further adoption of ETH could be in the works that justify its utility and a higher valuation.

A short-term slowdown

With the ETH clocking in consecutive gains, the market may likely see a pullback as sellers enter the scene to capitalize on a short-term selloff. Analyst eye the key $220 support holding, and the potential upside is secured if it remains above the 100-day SMA, according to FXStreet. Buyers may look to reenter at the presence of more attractive prices.