Ethereum (ETH) reached levels it last tested in January 2018 as a less volatile Bitcoin kept creating upside opportunities in the $105 billion altcoin market.
The second-largest cryptocurrency (by market cap) surged by roughly 10 percent on Monday to hit an intraday peak level of $1,391.82.
Its rally appeared in absence of any concrete catalysts, prompting observers to call the move entirely speculative. Meanwhile, some also noted that the coin merely benefited from a lack of wild fluctuations in the Bitcoin market that open attractive intraday opportunities for long/short traders.
— Narek Gevorgyan (@narek_gevorgyan) January 19, 2021
The top cryptocurrency went on a corrective course after setting a record high of $41,986 on January 8. After a 30 percent decline, it started consolidating sideways, with each extension leading to dimming volumes and low volatility. Traders typically use the Bitcoin’s consolidation phase as a cue to long the altcoin market, leading to beginning of the so-called “altseason.”
“ETH/BTC retesting highs of current movement and sitting over .033 sats level Current level acted a strong resistance over the last 4/5 months, so looking for a flip and straight continuation to the 2020 highs (~20%),” said independent analyst Nico. “Overall, looks good and altseason can’t happen without ETH.”
To many, Ethereum’s upside move is also an effort to reach its January 2018 high of $1,419. Economist Alex Krüger envisioned the ETH/USD rates hitting $2,000 in the coming sessions. He tweeted:
“Ethereum will soon pass to the next level. These are the levels to watch beyond all time highs: $1,500, $1,600, $1,920, $2,000, $2,240, $2,500, and $2,750.”
The upside predictions also appeared in the wake of Ethereum’s long-term bullish prospects owing to a plethora of supportive fundamentals. They include the booming decentralized finance projects that operates atop the Ethereum blockchain, thereby increasing ETH adoption, and its switch from proof-of-work to proof-of-stake (read ETH 2.0) that effectively puts a considerable ETH supply out of circulation.
“Ethereum’s daily transaction volume is going parabolic. It now settles $12 billion in transactions daily – $3 billion more than Bitcoin. Imagine not being bullish,” asserted Ryan Watkins, researcher at Messari, a data aggregation portal.
This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. CryptosOnline.com does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.
#Bitcoin #Cryptocurrency #Crypto