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Ethereum Passes $1000! Are you Looking To Cash in on the Profits?

Fibonacci extensions reveal probable profit-booking points....

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Shortly after we saw Ethereum (ETH) flirting with the $900 mark, and Vitalik Buterin announcing an Ethereum scalability program, the third largest cryptocurrency by market capitalization (coinmarketcap as of January 4), breached the $1000 mark on January 4th, 2018 (at 13:54 UTC). At the time of writing (16:20 UTC), Ethereum (ETH) is being traded at a price of $1,038.14, according to coinmarketcap data.

This is an all-time high for the cryptocurrency that has been trading since August 2015. Some of the key drivers that are currently supporting a bullish trend in this crypto asset are:

  1. Vitalik Buterin’s announcement to scale the Ethereum blockchain up to improve efficiency and reduce cost
  2. A very good Q4 roundup with transactions crossing 1 million per day, transaction volume doubling, and speed surpassing 10 transactions per second
  3. A consortium of European financial institutions, led by UBS, expressing trust in the Ethereum blockchain as they launch work on their pilot project which enables compliance with the new Markets in Financial Instruments Directive (MIFID) II.

Looking to Take Some Profit?

With Ethereum on a northward drift yet again, investors and traders are on the constant lookout for take-home profits. We did a little Fibonacci extension analysis on ETH’s recent price wave; identifying a low of $275 and a peak of $853. Now, the Fibonacci thumb rule for an uptrend holds that the 61.8%, 100%, and 161.8% Fibonacci levels are good places to take off some profits.

Accordingly, we may see:

  • Ethereum (ETH) rallying all the way to the 61.8% level, which is at about $1,210. So, that’s the first good point to take off some profits.
  • Now, a typical Fibonacci wave usually falls back to the 38.2% level which in this case stands at $1,073 (a probable support level). So, we may see a slight correction there.
  • Assuming that ETH does resume its surge, the price rally may go up to and find resistance at the 100% level which coincides with $1,430 in this case.
  • A final rally, breaking off from the resistance could be witnessed, leading the price up to the 161.8% Fibonacci extension level which stands at $1,787

Of course, there’s nothing stopping an incessant price surge giving those invested a good opportunity to just sit back and enjoy the bounty. However, for those who prefer to be risk-averse, and are more likely to cash in on short-term profit, the Fibonacci extension ETH price levels of $1,210, $1430, and $1787 may turn out to be vital price points to go by.

Featured Image Credit: Deposit Photos

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