Ethereum long target at $600 after establishing support above key breakout boundary

Ethereum price is doddering at $554 following a minor retreat from new yearly highs at $584. The largest altcoin was catapulted extensively above $500 over the last weekend. Ether had not traded at this price level since 2018.

The bull’s aim was $600 but the rally was cut short to allow buyers to find formidable and higher support. ETH/USD uptrend has taken a breather as highlighted by the Relative Strength Index. Stability appears to have returned to the market mainly due to the low trading volume.

Holding above $550 remains the bulls’ key priority. From here, they have a better standing to plan on how to get to the next rendezvous at $600. It is essential to realize that buying pressure behind Ethereum may increase as the network draws closer to ETH 2.0 launch.

Vitalik Buterin, the co-founder of Ethereum assured the community that the thresholds set for staking and number of nodes will be achieved before the deadline. Most analysts believe this launch is critical for Ether both as a digital currency and as a smart contract platform.

ETH/USD daily chart

For now, the path with the least resistance is upwards especially with support at $550. Trading above the recent high at $584 would boost the price above $600. Moreover, this feels like a conservative prediction based on the immense support ahead of the smart contract giant.

The bullish narrative will be invalidated if Ethereum closed the day under $550. On the downside, the next short-term support lies at $520. Extended downside price action would seek support between $480, $490, the 50 SMA and 100 SMA, Moreover, the oversold levels of the RSI suggest that a reversal is likely.

Ethereum Intraday Chart

Spot rate: $561

Percentage change: 0.2%

Relative change: 1

Trend: Bullish

Volatility: Low