2021-2-9 20:00 |
Ethereum (ETH) reentered price discovery mode just four days after reaching an all-time high of $1,764 on Friday. What’s the reason behind the current price increase, and should you buy some ETH now?
Fundamental analysis: DeFi sector and institutional inflows push the price upThe second-largest cryptocurrency by market capitalization continued its price increase throughout the day on amazing fundamentals. Ethereum currently has several things going in its favour:
The DeFi sector has reached a new milestone with $35.8 billion in total value locked (TVL). A total of 80% of the institutional money inflow came into Ethereum rather than Bitcoin in the past week. This type of institutional (and retail) interest created the perfect environment for ETH’s price increase.Ethereum posted week-over-week gains of 22.73%, falling short to Bitcoin’s 35% gain. The second-largest cryptocurrency by market cap currently boasts a market value of $200.19 billion.
At the time of writing, ETH is trading for $1,750, which represents a price increase of 27.94% when compared to the previous month’s value.
ETH/USD technical analysis:The second-largest cryptocurrency by market cap stayed below the $1,500 resistance level for over a week and failed to break the level several times. However, the recent improvement in the fundamental outlook alongside Bitcoin pushing the whole market up, sparked ETH bulls to attempt another push, this time with more power.
Ethereum bounced off of its 21-day EMA and pushed past the high resistance zone, creating new all-time highs along the way. The most recent push past $1,800 is just another confirmation of how strong Ethereum’s fundamentals are, but also how important Bitcoin is to the market.
However, despite its recent price surge, Ethereum’s volume seems to be slowly fading, which may ultimately limit its upside.
ETH/USD daily chartETH’s RSI on the daily time-frame is hovering just under the overbought area without officially entering it for several days now. Its current value is sitting at 66.52.
ETH/USD 1-hour chartYesterday’s good news coming from Tesla (its $1.5 billion Bitcoin investment) pushed the whole crypto market up, sparking Ethereum’s soar. ETH’s move past the $1,800 mark was quite natural and by no means an overextended push, as the cryptocurrency’s downside was closely protected by the 21-hour EMA.
While a straight-up push to $2,000 highs is highly unlikely, Ethereum has very strong support at several stages (its previous all-time high, the zone slightly above $1,500 as well as its daily and hourly EMAs) that could protect its downside. Ether is fighting to stay above the 21-hour EMA at this moment, with the line holding quite well.
The post Ethereum posts a new all-time high: What’s next for ETH? appeared first on Invezz.
Similar to Notcoin - TapSwap on Solana Airdrops In 2024
ETH/LINK Price Action Candlestick Set (LINKETHPA) на Currencies.ru
|
