After being largely oversold for months, ETH finally broke away from the $280-$300 zone to reach its previous resistance levels at $380, $395 and $420. In fact, for the past hours, ETH has been trying to move ahead of the $420 zone, which is the previous all-time high. Once this barrier is breached, there will be no old resistance levels for ETH to stop at; the market should expect new all-time-highs.
A similar situation happened earlier this year in March and April when prices fluctuated between $42-$50. However, once the price broke the $56 resistance level, it quickly reached $90 – where it settled itself for two weeks, before continuing the rally up to $400.
Surprisingly, the current ETH price chart looks very similar to the one mentioned above. The $280-$300 price zone looks strangely familiar to the one witnessed in March, and this week's break-out remind us a lot the $56-90$ spike, with current support levels being around the $350-$360 zone.
If a similar situation to the $90-$400 price spike was to play out this time, ETH could be quickly heading to the $1000 region, a critical psychological resistance level.
Considering how price chart history tends to repeat itself, we can expect a price rally once ETH breaks out from the $420 zone, in the following days. If a similar situation to the $90-$400 price spike was to play out this time, ETH could be quickly heading to the $1000 region, a critical psychological resistance level.
To conclude the analysis, if (when) ETH prices go past the $420 zone, there will be no resistance levels preventing it from going much higher. Overlapping old and new graphics, should show the similarities between previous and current runs and present the probability of future prices. After all, if Bitcoin has seen a 270% rise in the past few months, why can't ether?