Ethereum (ETH) is currently attracting all the attention. While Bitcoin takes back gas, the number two of the cryptomarkt pops up. The course is approaching the 4,000 dollars and analysts see strong signals that the rally is not over yet. According to Analysis Platform Trendspider, Ethereum experiences its “leading role”.
Ethereum breaks loose after months of structure
After months of fluctuating between 2,000 and $ 3,000, there was finally movement in July. Ethereum broke around $ 3,000 to $ 3,200 due to the resistance and that caused a large buying wave. In the meantime, the race was already tapping $ 3,800.
According to Trendspider, the graph shows a classic ‘cup’ pattern, which has formed in the past six months. Such patterns often indicate a sturdy upward movement. The volume profile also confirms this image: the region between $ 2,500 and $ 3,000 now acts as strong support.
Investors aim at $ 5,000 to 8,000
Not only the graph looks positive. In a poll from the crypto analyst, more than 80 percent of the participants expect Ethereum to pass the $ 4,000 this year. More than 40 percent even think of $ 5,000, while smaller groups aim at $ 6,000, $ 7,000 or even $ 8,000.
Big players are fully committed to Ethereum
It is not only private investors who board. Institutional parties also dive en masse on Ethereum. On July 18, more than 400 million dollars in new capital came in in Ethereum ETFs. With that Eth even passed Bitcoin.
Most inflow came from BlackRock’s ETHA Fund, which now takes care of almost all activity in Ethereum ETFs. Whales also make himself heard: an investor recently bought 13,462 ETH worth around 50 million dollars.
The futures market follows the same pattern. Open interest in Ethereum-Futures rose by almost 13 percent to $ 786 billion. Some traders use heavily, such as James Wynn, who is known for his 25x long positions of millions of dollars.
Ethereum continues to rise, but a chance of short relapse
At the time of writing, Ethereum is at $ 3,810, good for an increase of more than 4 percent in 24 hours and 25 percent over the past week. The rate is well above the 50-day average of $ 2,674 and the 200-day average of $ 2,357.
Yet there are also warnings. The RSI (relative strength index) is 84, which means that Ethereum is technically ‘overheated’. A short correction is therefore lurking – although that does not affect the positive sentiment for the time being.
Source: https://newsbit.nl/ethereum-koers-explodeert-4-000-in-zicht-analisten-voorspellen-meer/
