Last week, the price of Ethereum rose sharply by 66%. It rose from $ 83 to $ 138 in the middle of a strong corrective meeting. And it was triggered by oversold conditions and short contracts were squeezed. This allowed to recover the price of the asset.
Good times for Ethereum?
The price of Ethereum is still down 91% from its all-time high of $ 1,448. Even with a massive corrective rally, Ethereum and the rest of the cryptocurrency market are in a bear market and are struggling to recover.
A sudden breakout of major resistance levels may also leave a resource subject to large declines in the short term. This is harmful if it can not be sustained with a high volume.
Hsaka, a technical cryptocurrency analyst, suggests that Ethereum is a better resource to shorten. He attributes it to his high volatility and recent rally.
"Quite a substantial difference between the ETH and BTC structure, if you bet on the correlation remaining the same, and both return to the structural balance, $ ETH seems to be the best game for the shorts, and BTC for the long",
l & # 39; analyst He said.
A cryptographic merchant with the online alias "The Crypto Dog" explained that Bitcoin is faced with different levels of resistance between $ 4,000 and $ 6,000.
The dealer said:
$ 4,000 – $ 4,500 is a great drag and we could stop early. It's also possible that this could go higher, but I do not think it goes much higher than $ 5,400.
In the second half of December, Bitcoin, Ethereum, Bitcoin Cash, Ripple and many cryptographic activities recorded relatively high gains compared to the US dollar.
Can the Sustain Momentum market?
Bitcoin The cash price has tripled from $ 75 to $ 238 and the price of the bitcoin has risen from $ 3,210 to $ 4,000.
The main cryptographic resources are showing strong daily volumes, with the daily volume of the encrypted market exceeding 20 billion dollars. If Bitcoin and Ethereum can sustain their volumes, it is likely that the small cryptocurrencies market cap will follow the price trend of the two digital resources.
Like Joseph Lubin, the co-founder of Ethereum, He said:
I'm calling the cryptographic fund of 2018. This fund is marked by an epic amount of fear, uncertainty and doubt on the part of our friends in the 4th and crypto-fifth estates.