Ethereum Price May Hit $300 If This Happens

Ethereum rallied behind Bitcoin’s push to $9,800 but came up stronger with a powerful push toward $250. The rally fell short of the target, but volume accumulation showed it is ready to break the psychological resistance.

Ether pushed through $247 on June 22 and continued the momentum Wednesday, inching closely to $250. This is the highest price of Ether since June 11. But this is the resistance level for Ethereum, which is similar to Bitcoin’s $10,000.

According to analyst Michaël van de Poppe, $250 is the final hurdle for Ether before it can accelerate towards $300. He did say the $215 and $220 must hold, which actually did during bounces, notably on June 15.

“Such a bounce implies that buyers are eager to step in and are significantly pushing up the price,” he wrote on Cointelegraph.

Since March 12, Ether is essentially in an uptrend. All previous lower resistances have been breached and became support. Van de Poppe said this implied upward strength. Ether is now on the cusp of breaking $250. The analyst said once it does, the $290 level will not last long. A breach past $300 will put Ether to higher levels. “More likely, ETH/USD may see a quick rise to $330 or even $360,” he wrote further. The chart he shared on TradingView in February still remained on track:

Ethereum facing a rally towards $360 and maybe more? Disbelief. by CryptoMichNL on TradingView.com

Van de Poppe did say the break to $250 will not happen in one go because more ranging is expected. Additionally, Bitcoin breaking $10,500 must also come into play.

Retracements are now at $232-$235. If ETH rallies above $250, he expects the price to look at $232 for support.

Technicals aside, some fundamental metrics are showing signs of bullishness for Ethereum’s price.

Decentralized Finance (DeFi) has had a stronger narrative in 2020 and there is sustained investor interest in this sector. According to DeFi Pulse, the total value locked in DeFi is $1.6 billion, the majority of which are locked in Ethereum or Ether-based tokens.

Finally, as Ethereum transitions to Proof-of-Stake consensus algorithm, demand for Ether might continue to increase. Proof-of-Stake will transfer the power from miners to stakeholders, essentially giving increased importance to each ETH staked to confirm transactions and receive rewards based on the amount staked by the user.