The cryptocurrency market is that of a mixed outlook. While BTC consolidates at $27K after dropping from its ATH, some Altcoins are delivering significant returns. Altcoin market leader, Ethereum (ETH) is trading above $700 for the first time since May 2018. Compared to its lows of $113 in March, ETH/USD is now up 530%. The second-largest asset is on fire, gaining 7.83% on the daily and 20.05% weekly. After 5 straight days of bullish action, a fresh 2020 high was set during an end of year rally on ETH/USD at $745. At the time of writing, Ethereum is exchanging hands at $740. With a total market cap of $83.5 million, it is said that Ethereum’s market value has now exceeded that of BMW while ETH trading volume in the last 24 hours stands at $30.1 billion. Ethereum’s success also has been getting a lot of audiences recently. Ethereum has also seen more attention from institutional investors. Grayscale investments have continued to grow its underlying ETH holdings for clients, closing in on $2 billion in ETH in its tradable Ethereum trust. Ryan Watkins of Messari believes that institutional investors will switch from BTC to ETH in 2021.
*Ethereum (ETH) is trading above $700 for the first time since May 2018
*At the time of writing, Ethereum is exchanging hands at $740
*Grayscale investments has continued to grow its underlying ETH holdings for clients
Key Levels
Resistance Levels: $1000, $800, $750
Support Levels: $680, $590, $480
ETH/USD Daily ChartETH/USD is in the bulls’ territory. The upsloping moving averages and the RSI in the positive territory suggest that bulls have the upper hand. A spike in fresh capital may push Ethereum to the $800 mark. On the upside, a barrier cap comes at $750. Once this is flipped, the move is likely to gain traction with the next focus on $900 followed by the psychological $1,000.
On the contrary, if the price turns down due to the strong resistance created by $750, a downside correction may be triggered towards $700. Support is envisaged at the $650 and $567 coinciding with the MA 50 close. In the case of further declines, the $544 level may cushion further losses like it did on December 23.
ETH/USD 4-Hour ChartETH/USD slowed down on its approach to $750, however, ETH bulls remain relentless as seen in an intraday high of $745. If this level is surpassed, the Ethereum price faces practically no resistance towards $1,000. On the flip side, if the price turns down from current levels, the first level of support lies at $680.
Beneath this, support is located at $635 and $597 coinciding with the MA 50 and MA 200 respectively. The ETH/USD pair is only bullish while trading beyond the $635 level around the MA 50, key resistance is found at the $750 and the $800 levels. If the ETH/USD pair trades beneath the $635, sellers may test the $550 and $480 prior support cluster.
Note: Kryptomoney.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results
Image Credit: Shutterstock
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
