Ethereum Price Breaches Pivotal Resistance Level—And That’s Big for Bulls

  • It’s been a good day for the crypto market, with Bitcoin, Ethereum, and altcoins posting strong gains.
  • The two leading crypto-assets have gained approximately 8% each over the past 24 hours, which is the best performance in many weeks.
  • Ethereum is expected to move higher as fundamental and technical trends align.
  • One crypto-asset trader pointed to the significance of Ethereum’s recent move higher.
  • The leading cryptocurrency recently passed above the important $390 resistance level, which marked the highs of a rally a number of weeks ago.
  • ETH closing above this level on a two-day basis will confirm that there’s more upside in the cards for the asset.

Ethereum Explodes Higher as Bitcoin Roars to $13,000

Ethereum is exploding higher as Bitcoin posts one of its best days in many months.

BTC is up 8% in the past 24 hours, having rallied from $11,900 to $12,850 as of this article’s writing, shocking most investors. ETH has pushed higher too, moving above $390 to $400 as of this article’s writing.

One crypto-asset trader pointed to the significance of Ethereum’s recent move higher.

The chart below is of ETH’s macro price performance but inverted. As the chart indicates, the leading cryptocurrency recently passed above the important $390 resistance level, which marked the highs of a rally a number of weeks ago.

This suggests that Ethereum is primed to move even higher in the weeks ahead if it confirms the level as support.

Image

Chart of ETH's price action since the start of 2018 with analysis by crypto trader Horn Hairs (@Cryptohornhairs on Twitter).
Source: ETHUSD (inverse) from TradingView.com

Fundamental Trends Favoring Bulls

Fundamental Ethereum trends are favoring the bullish narrative shared by analysts.

Santiment, a blockchain data company, reported just recently that Ethereum investors are accumulating en-masse:

“$ETH’s top 10 whale exchange addresses have continued swapping their funds to non-exchange wallets, & moving holdings at an impressive rate. The 20.5% decrease in tokens on exchanges the past 2 months indicates price confidence by top #Ethereum holders.”

Image

Chart of ETH's price action over the past few months with an overlay of the number of top 10 exchange holdings vs. non-exchange holdings.
Chart from Santiment, a blockchain analytics firm.

Not to mention, innovation on the network continues as capital from venture capital firms continues to flood into the space.

Photo by JW DANG on Unsplash
Price tags: ethusd, ethbtc
Charts from TradingView.com
Ethereum Price Breaches Pivotal Resistance Level—And That's Big for Bulls
Publication date: 
10/22/2020 - 13:00
Author: 
Disclaimer

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