Ethereum (ETH) price soared nearly 15% on Tuesday to touch a new record high of $1,440.
Fundamental analysis: Ethereum continues as Bitcoin takes a break
Ethereum reached its previous all-time high of $1,420 in January 2018, helped by Bitcoin’s rally at the end of 2017. In a similar fashion, ETH waited for BTC to clear the way before pushing higher as BTC buyers took a step back.
Bitcoin price has been hitting record after record over the past several weeks. The number one cryptocurrency nearly broke above $42,000 at the start of the month but has seen a pullback afterwards.
Bitcoin is up nearly 30% year-to-date and has soared over 800% since collapsing in March last year. According to some analysts, Bitcoin’s rally has been driven by increased adoption among institutional investors as well as an unprecedented stimulus by global central banks amid the coronavirus pandemic, giving rise to concerns over inflation and currency devaluation.Ethereum has launched a major upgrade at the end of 2020 under the name Ethereum 2.0, which aims to make the network faster and improve its security.
“The Ethereum technology has undergone a tremendous amount of development since reaching it’s 2017 high,” said Nicholas Pelecanos, head of trading at crypto firm NEM. “At that time, the new capital investment in the space was largely speculative and for functionalities that were still in development.”
Technical analysis: What’s next?
Ethereum price is now up over 15% this week to increase its monthly gains to nearly 100%. This is even more impressive bearing in mind that ETH gained nearly 60% and 20% in November and December, respectively.
Ethereum daily chart (TradingView)
Going forward, it remains to be seen whether ETH buyers are able to force a weekly close above the previous high of $1,420. In this case, the next target on the upside are $1,477 and $1,633 – two extension lines of the most recent correction. On the downside, we may see decent ETH buying interest near $1,350.
ETH/USD price soared by around 15% on Tuesday to print a fresh all-time high of $1,440 and, therefore, surpass the previous record high from January 2018.
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