Warp speed to $2,000? Watch these levels as Ethereum nears all-time high

Bitcoin (BTC) is currently approaching $40,000 after seeing massive gains in the first seven days of 2021. This is a 100% move up from the previous all-time high in December 2017. In other words, the price levels it took Bitcoin three years to recoup have now nearly doubled in a matter of weeks.

ETH, BTC price gains, January 2021. Source: Digital Assets Data 

Meanwhile, the price of Ether (ETH) has surged by more than 100% in three weeks. However, it has yet to break its all-time high of roughly $1,420 set on Jan. 13, 2018.

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Therefore, the primary question is whether altcoins will underperform, keep pace or outperform BTC in the near term. Let’s look at the ETH price charts to get an idea where this “alt season” can go in the near term. 

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Ether reaches second Fibonacci level for a potential top

ETH/USD 3-day chart. Source: TradingView

The three-day chart for Ether is displaying a vertical rally in recent weeks, which has resulted in several key levels being hit. In this case, the Fibonacci extension tool is useful in determining the next potential top.

Frequently, this indicator is used to determine different top structures in price discovery, but it can also be used to gauge the likely strength of the next impulse move.

In this case, the recent high of the impulse move was at $470. The current low was at $90 in March 2020. Based on that information, the 1.618 Fibonacci level was found at $750, while the 2.618 Fibonacci extension was at $1,150. The latter also confluences with the all-time high region, which Ether is currently in.

The next higher low puts $2,700 in play

ETH/USD 1-week chart. Source: TradingView

The weekly chart has to be put on the logarithmic scale to make this analysis. However, if the Ether chart tops out in the near future — this could also be after a rally toward $1,500 and a new all-time high — the same Fibonacci extension can be drawn over the recent impulse move.