Similarly to Bitcoin, Ethereum has recorded one of the best starts to the year in recent years. The world’s second largest coin by market capitalization has gained more than 30% so far. The fundamental and technical indicators point towards further short-term gains for Ethereum.
Fundamental analysis: Over 350 companies use Ethereum
According to a list shared by analyst Adam Cochran, more than 359 projects are currently building on the protocol.
The list includes some giant names, such as Nike, Barclays, TD, Intel, Microsoft, FedEx, Samsung, McDonald’s etc. Besides the big companies, the list includes and a long list of startups.
“Then there are crypto startups and companies who are building on or integrating into the Ethereum blockchain and weren’t funded by Consensys or the EF [Ethereum Foundation], or took late stage investment from them,” added Cochran.
Additional fundamental indicators point towards a bright future for the Ethereum Foundation. The last year is referred to as a year of Decentralized Finance (DeFi) products, which have a total value of more than $800 million locked in USD.
The growth of DeFi market has been closely associated with Ethereum. The DeFi’s market growth has been accelerated by the rise of Ethereum price, which may continue on happening in the short-term.
Technical analysis: More room for gains
Technically, Ethereum has laid the groundwork for, potentially, a bigger move upwards. In the recent two weeks, the bulls have successfully cleared three different levels of resistance, including the key horizontal resistance at $152.00.
The breakout move, which occurred on January 14, can facilitate more gains for Ethereum in the short-term. As seen in the chart below, the area above $180 is now a clear target for the bulls.
The zone around $180 consists of two important resistances and it is an apparent target for the bulls. If reached, it will translate into an additional 8% gain from the current market price of $169. In the mid-term, Ethereum bulls will still want to visit the zone around $225.00.
On the downside, the 100-DMA provides immediate support to bulls. The aforementioned zone around $150 offers further support. In general, the area of $145 – $160 will act as a support now, and potentially offer an opportunity for those who want to buy Ethereum lower.
The Ethereum Foundation continues to make strides towards the fundamental side. Technically, the price action cleared important levels of resistance, which laid the groundwork for a potential move to $182 first, and then $225 in the coming weeks and months.