• Ethereum (ETH) recently surged past the $1,700 level for the first time in five months.
• ETH is facing strong resistance at $1,680 and traders of ETH futures contract have failed to enter the neutral-to-bullish 4 percent threshold.
• Profit-taking has also reached its highest levels in two years since February 2021 which could give bears the upper hand to cancel any bullish triangle pattern.
Ethereum Hits New Milestone
Ethereum (ETH) recently made a strong move at $1,700 for the first time in five months but failed to hold above it and is currently facing strong resistance at $1,680. This surge in ETH price has pushed its market cap to a whopping $200 billion.
Technical Analysis
On the technical chart, ETH is currently forming an ascending triangle pattern. Analysts are expecting that with overall improvement in investor sentiment towards ETH, price could reach up to $1,800 or even higher this month in February.
Futures Market Indicators
Looking at the Ethereum (ETH) derivatives market, traders of ETH futures contract have failed to enter the neutral-to-bullish 4 percent threshold. The existing 3.5 percent premium shows a moderate improvement in sentiment compared to two weeks back though traders are not expecting any immediate positive price action here.
Profit Taking Hike
The profit-taking hike has also reached its highest levels in two years since February 2021 which could give bears the upper hand to cancel any bullish triangle pattern on Ethereum’s chart.
Conclusion
Overall, Ethereum made a solid move by reaching beyond $1,700 after 5 months but still faces some bearish indicators from both technical and derivatives markets which might prevent it from rallying further this week towards $2000 level