According to analysts at the Kraken cryptocurrency exchange, the Ethereum cryptocurrency ether is at a fork in the road and is facing a serious challenge – to rise above $ 2,700.
Kraken analysts, led by Pete Humiston, said in a market review on Wednesday that Ether jumped 35% and surpassed Bitcoin’s 30% gain in March.
However, they said, “If you look at the historical price movement, ETH is at a fork in the road.” On Thursday morning, the second largest cryptocurrency in the world was worth around $ 1990.
Kraken said on Wednesday that chart analysis indicated the next big Ether resistance level would be around $ 2,700. If it passes that level, it could break into a higher band where the next resistance level is $ 5,000, the report said.
However, analysts added that there is a danger that ether will fall below a key support level near $ 1,460, in which case it could fall into a lower trading band where the lower support level is at $ 990.
However, the wild volatility of cryptocurrencies means movements are difficult to predict and make technical analysis difficult.
The Kraken report also says the second quarter has historically been good for Ether, which has yet to receive negative returns over that period.
Ether has jumped more than 1000% over the past year as interest in cryptocurrencies has skyrocketed. It hit an all-time high of around $ 2,150 earlier in April and traded around $ 2,000 last week.
The developers of the Ethereum network intend to make major changes to the system in July. The changes will change how transactions work and begin to destroy Ethereum coins, which some analysts believe could lead to a sharp rise in prices.
Billionaire investor Mark Cuban told the Unchained podcast on Tuesday that he is optimistic about Ether and the Ethereum network thanks to numerous applications, including essential tokens and smart contracts.
However, cryptocurrencies continue to divide the financial world. Economist Nouriel Roubini on Tuesday reiterated his accusation that bitcoin and other cryptocurrencies are too volatile and difficult to use as currencies, on Bloomberg TV.
He questioned bitcoin’s value and called it a “self-fulfilling bubble.”