Ethereum achieved new all-time high levels

News • 2021/04/30 • oleh

Bitcoin / US Dollar

The fall from $64,000 to $49,000 was a bearish move that broke down two major support levels. The compression point around $58,000 was the first support level that made the bearish trend stop for a while but this wasn’t enough. The psychological barrier at $50,000 was the next point in the price chart but it also broke down.

The crucial reversal in the price formation was the $47,500 support zone, where there was a large jump in the Bitcoin price. This jump was made possible after Tesla announced that it will buy $1.5 billion worth of Bitcoin (where it liquidated a portion of them in the last days, contributing to the profit-taking process).

After hitting a local low point at $49,000, Bitcoin’s price made a positive move towards the $55,000 point and established another compressing point around this point. The new compression point around $55,000 could expect a new jump around the previous compression point at $58,000, which will be a new trial for Bitcoin to reach better results in the short-term future. If this point could be achieved, we might expect that the bearish feelings will be terminated and the market might explore new all-time high levels, with fresh capital.

On the other hand, the bearish thoughts would be established if there is a strong move that could smash the $47,500 support barrier and bring the market to lower levels. Breaking this specific barrier might reverse investors’ feelings and fundamental analysis, leading to more liquidations. We expect a new break in the compression point that will bring the change in the Bitcoin market.

The trading volumes have moved to normal levels while the moving averages have been positioned at bearish formation, predicting that the market will continue to remain on the same price levels.

In the short-term diagram, we can observe that the market has made a significant bearish move during the last period, showing that the liquidations in the market and the profit-taking process were continuous and there was a massive wave towards this direction. This move might be the start for market clearance and new capital to enter the market and drive the price to new levels.

Indicators

MACD index has remained in the negative field, making investors believe that the market has still no momentum to make the price climb at higher levels. The RSI index has moved just below value = 50, indicating that the price might remain stable for the next period.

Ethereum / US Dollar

Ethereum is the definite deal-breaker in the current market position, reaching new all-time high levels every day. During the last hours, Ethereum’s price climbed at $2,700, after fluctuating between $2,500 and $2,100 for several days.
As the price has reached new high levels, there is no certainty about how long this bullish trend will continue and how far the price will climb.

The minor support levels around the current trend are laying around $2,400, which was the average level during the previous period while the support level around $2,000, is much stronger and can be a strong indicator about the price development in the next period.

We should also highlight that the price’s bullish moves should be correlated with European Investment Bank’s decision to issue a new bond in the Ethereum blockchain, making investors more confident about its institutional approval.
The trading volumes have been risen during the last period, indicating the investors have been placing capital in the entire time while the moving averages have sustained a positive outlook for now.

Indicators

MACD index has been climbing during the last week, bringing more momentum in the price formation while the RSI index is reaching value = 70, which means that the market is reaching an overbought status.

Ripple / US Dollar

Ripple holds the price above $1, indicating that the market has passed at another level for now. After hitting the $1 point, the price continued to climb until it reaches $1.60, creating 60 % returns in just a week.

The higher volatility levels show that more and more investors are entering the market and trying to place their capital and drive the market to higher levels. Those investors have been much more confident after Ripple’s founders turn against SEC and sue them for non-based charges in the previous case.

Leveraging previous data from Ripple’s history is quite difficult to predict any move in the short-term future. Thus, we expect that the market will consolidate more power regarding its short-term past that will bring the market to more predictable levels than before.

The trading volumes have been rising at a sustainable rate and the moving averages have been moving at a positive rate, even if they are at bearish formation.

Indicators

MACD index is climbing towards the positive field but there is still a little more to be achieved for that. The RSI index moves to value = 65, indicating that the coin has more way to grow in the next period.

Litecoin / US Dollar

Litecoin followed the same pattern with Bitcoin, reaching a local low level of around $220. Like Bitcoin, Litecoin didn’t reach its major support level of around $200, which was a positive signal for the market. From this point and on, its price climbed up to $265, having a long way to grow to reach the previous high levels.

Given that Litecoin is heavily dependent on Bitcoin’s moves, we expect that every move from the market leader will be copied and followed, shaping a new direction for every turn in the market. The expectations for Litecoin’s price development are moderate at this moment, indicating that a new bullish projection will bring the price at $300 while a bearish move will drive the price around $200.

The trading volumes have been decreased since the last period as the major sell-offs have been settled for now. The moving averages have been placed at bearish positioning but the lines are still close to each other.

Indicators

MACD index is moving upwards but they are still placed at bearish positioning, bringing the market without any momentum boost. The RSI index has moved between values 55 and 60, indicating that there is a positive outlook in the standing situation.

Bitcoin Cash / US Dollar

The high levels have also been established in the Bitcoin Cash market, where the market reached a local low level of around $750. The positive fact, in this case, is that the price didn’t reach the major support level of around $700, implementing a higher possibility of bullish return in the short-term future.

This scenario was proven real, making the price climb around $940 and shaping a path for the return above $1,000. The positive path above this level will find much more resistance and there would be a need for more capital in the market.

The price formation has been shaped at a bullish standing, showing that the market could be affected positively by other dominant coins in the market like Bitcoin or Ethereum. The trading volumes have been rising, compared to the last period while the moving averages cross each other, forming a reverse “Golden Cross”, a strange signal for this market positioning.

Indicators

MACD index has continued in the negative field, pressing the market for negative momentum in the current formation. The RSI index has moved around value = 60, indicating that the market has been in a positive mood.

Correlations

Bitcoin / Ethereum = - 0.14 (- 0.85), Bitcoin / Ripple = 0.89 (+ 0.22), Bitcoin / Litecoin = 0.73 (+ 0.19), Bitcoin / Bitcoin Cash = 0.04 (- 0.26)

Ethereum was the most positive asset during the last period, making a strong statement about who is the market leader and which coin has achieved the best returns in that period. This brought a shake-up in the correlations field, bringing its correlation with Bitcoin to negative values and establishing an anti-climactic relationship with independent characteristics in its growth.

The same case is evident in the Bitcoin Cash market, whose price development seems quite independent, in a larger framework. On the other hand, Ripple and Litecoin have experienced a close relationship with Bitcoin, shaping their price development close to Bitcoin’s fluctuations, predicting a matching route in the next period.