The price of Ether (ETH), the native cryptocurrency of Ethereum, has surpassed $547. Following the breakout, traders are pinpointing several fundamental resistance levels in the well-nigh term.

In the short term, traders by and large foresee $600 as the major resistance area for Ether as it marked the starting time of a bearish trend starting in May 2018. As such, $600 could act as an surface area of interest for sellers.

Simply, traders also believe that if Ether surpasses $600, it would likely enter the $700 to $900 range. Above it, in that location is piddling resistance until the all-time high.

The weekly price chart of Ether. Source: TradingView.com

Ethereum's outlook remains positive

The Ethereum network has seen numerous catalysts come into play in recent months.

First, the Ethereum 2.0 network upgrade is progressing, every bit a large number of Ether continues to catamenia into the deposit contract accost.

Ethereum 2.0 is a significant upgrade to move Ethereum from the proof-of-work (Pow) consensus algorithm to the proof-of-pale (PoS) algorithm. Essentially, it removes miners from the network to optimize the settlement of transactions.

Second, on-concatenation information show that whales are continuing to accumulate Ether. This trend coincides with a drop in Ether exchange reserves, particularly as more holders deposit the digital asset to the Eth2 eolith contract. Researchers at Santiment wrote when Ether initially broke out of $500:

"Following in $BTC's footsteps, $ETH has hitting a 29-month high of $509. June 21, 2018 was the last time the price was this high for the #two market cap asset. #Ethereum's top x holders rising, combined with coin supply on exchanges, have fueled this rally."

The strong fundamental catalysts for Ethereum and the favorable technical structure for Ether has traders optimistic about the near term price tendency of Ether.

Michael van de Poppe, a total-time trader at the Amsterdam Stock Exchange, said a pullback at $600 is likely. But, above it, the trader said the route towards $900 to $i,000 is open.

Potential Ether toll cycle with resistance levels. Source: TradingView, Michael van de Poppe

A pseudonymous trader known as "Rookie" similarly said that ETH to $700 by the year's end is likely. ETH has seen a parabolic uptrend since July 2020, raising the probability of a prolonged rally bridging over to 2021.

Will Ether follow Bitcoin price?

During the 2017 rally, when Bitcoin neared $xx,000 across major exchanges, altcoins were relatively stagnant. Ether and other major cryptocurrencies saw explosive price movements in January 2018, later on BTC had peaked.

Ether seeing renewed momentum in 2021 would go in line with the trend it saw in the 2017 post-halving wheel. Although at that place is lilliputian historical data to suggest that Ether and altcoins will follow the same trend every bit iii years ago, the narrative of a January 2021 altcoin rally remains stiff.

For Ether to see a prolonged uptrend, it would first demand to reclaim the $600 resistance level every bit many analysts view this level equally the biggest well-nigh term threat.