Ethereum over $4,000 at New All-Time Highs

Tin Tức Crypto • 2021/05/10 • bởi

Bitcoin / US Dollar

The compression point has made a new jump in its formation, proving one of the major bullish scenarios that were presented in the previous article. The compression point around $56,000 broke out bullishly and climbed towards $58,000. The $58,000 point was a significant level during the previous period as it functions as the compression point before the price reached its all-time high level.

During April 2021, the $58,000 point was tested several times, proving that the market has found a turning point that can predict a potential bullish or bearish move in the next short-term period. In the past period, the $58,000 point was followed by a bullish and a bearish reaction. The current situation depicts a positive background for the next period, proving that there is a possibility for another bullish cycle in a waiting mode.

We expect that the market will try to boost the next period’s moves by establishing the strongest channel around the $58,000 compression point and try to reach the $64,000 all-time high level again. If this could be achieved in the next period, altcoins’ profits will have played a crucial role in that also.
The trading volumes have been sustained at higher levels, indicating that investors are waiting for the bullish signal that will make the market explode again. The moving averages have sustained a bullish position, confirming the previous statements.

In the short-term diagram, we can observe that the 3 previous weeks have been “hoppy” for the market as the price had several ups and downs from $50,000 until the current price levels around $58,000. This happens because investors have sustained a bullish option towards Bitcoin, without establishing a clear view about its short-term projection.

Indicators

MACD index continues to move in the positive area, indicating that the positive momentum has contributed to the upscale during the last period. The RSI index moved near value = 55, showing that the market will move in the same levels for now, with a positive perspective.

Ethereum / US Dollar

Every day has been a new all-time high level for Ethereum, breaking the $4,000 point and making the market hotter than ever. Ethereum has accumulated more than 800 % returns by the start of the year, outperforming Bitcoin in short-term periods, especially over the last month. This price explosion was made possible through a major reason that played an important role in Bitcoin’s case also. The institutional adoption enabled more and more capital to flow in the market and drive the price at higher levels.

European Investment Bank’s decision to issue its new bond in Ethereum’s public blockchain along with major European banks was the turning point, where many investors took the institutional “check” to move to more purchases and more long-term plans regarding Ethereum.

The next point for the Ethereum market is to build a strong market depth that will allow it to have a sustainable route to higher levels with more confidence. The market depth is built with large trading volumes that made the market more resilient to bearish moves and don’t allow the price to fell at lower price levels.

We believe that the market will work in this direction and there is optimism about its future.
The trading volumes have been continuously high during the last period, which is correlated with the price action while the moving averages have been away from each other at bullish positioning.

Indicators

MACD index has been placed at the positive area, contributing another factor in the price action. The RSI index climbed above value = 80, indicating that the market has been at extremely high levels and we should expect a corrective action at any time in the next period.

Ripple / US Dollar

Ripple has sustained a more stable approach in the last few days, around $1.55. The stable move at those high levels is a significant positive signal, showing that the market is getting more mature day by day and absorbs more mature investors in this period.

After reaching the all-time high level at $1.83, there was a severe correction trend in the market, which shows that the market couldn’t hold the high levels above $1.00 for long. The $1.00 point was a major support point for the market, making the market grow even more at $1.60.

The key challenge for this period (like Ethereum) is the high-level sustainability that will prepare the market for the next bullish cycle. The high levels’ period looks more sustainable at this point, indicating that there is a possibility for the market not to have complete this cycle.

The trading volumes have been on the same level during the high levels’ period while the moving averages have been sustained at bullish positioning.

Indicators

MACD index passed on the negative side, showing that the current stability in the market could not be beneficial for the momentum’s contribution. The RSI index has moved between values 55 and 60, indicating that the market is trying to enter a positive sphere again.

Litecoin / US Dollar

Litecoin made important progress during the weekend, climbing to new all-time high levels around $390. Litecoin has not been the priority for many investors due to short moves and irregular moves that often were copied from larger markets like Bitcoin and Ethereum.

The coin has been in the price exploration mode, showing that there is no evidence on when the market will stop growing to form new resistance levels. On the other hand, the minor support levels lay around $350, which was the current resistance point, and $300, the previous all-time high level.

The major support level in this bullish market lays around $230, which remained as a long-term resistance point during the last period.
The trading volumes have skyrocketed during the last month, fueling the price surge while the moving averages have been moving apart, creating another bullish outlook for the market.

Indicators

MACD index continues to rise, making the market affect the price momentum in the bullish direction. The RSI index had climbed above value = 75, which indicates that the market might correct at any time in the short-term future.

Bitcoin Cash / US Dollar

Bitcoin Cash has made more unstable moves in the last period, making the coin look in the mix between Bitcoin and Ethereum’s trends. Even if Bitcoin Cash has achieved new high levels around $1,500, the minor corrections and the disharmonic movements in the price chart show that several forces in the market might need further examination before getting involved in the market.

The $1,000 level remains the stronger resistance/support level in the recent bullish period and it will be the main point for a future correction and starting a new bullish cycle again. The high-level establishment will bring back new challenges for the market, taking investors to think about the coin’s future regarding their moves in the market.

The trading volumes have been at high levels during the last month, proving that the market has attracted more investors than ever. The moving averages continue to move in bullish positions without any change in their direction.

Indicators

MACD index has remained in the same positive area, confirming the positive momentum in the market while the RSI index has climbed again at value = 70, indicating that the bullish cycle has ended for now.

Correlations

Bitcoin / Ethereum = 0.81 (+ 0.28), Bitcoin / Ripple = 0.96 (+ 0.04), Bitcoin / Litecoin = 0.76 (+ 0.15), Bitcoin / Bitcoin Cash = 0.76 (+ 0.16)

The weekend was a positive period for any crypto, bringing the market in a single direction, regarding its price formation. Litecoin and Bitcoin Cash have surged, making their correlation with Bitcoin land in the medium correlation zone. This means that any move in those markets might be mildly affected by the main market’s moves like a sudden drop in the Bitcoin market.

On the other hand, Ripple has brought its correlation at the highest possible level while Ethereum has made a significant jump in the correlation chart, establishing a strong position against it. This jump shows that there is a potential bullish move in both markets that could bring each other to higher levels.