Vladimir Zernov
Add to Bookmarks

Ethereum Video 12.05.21.

Ethereum Rallies To New Highs

Ethereum managed to get above the $4300 level and moved higher as the cryptocurrency continued to close the gap in market capitalization with Bitcoin.

Know where Bitcoin is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Meanwhile, Bitcoin Dominance, which measures Bitcoin’s market capitalization as a percentage of total crypto market capitalization, declined to 44%. Bitcoin’s market capitalization is currently above $1 trillion, while Ethereum has recently reached the $500 billion mark.

Recent reports indicated that Ethereum balance on exchanges reached a 23-month low which served as an additional bullish catalyst. The current market sentiment is very bullish, but it remains to be seen whether the rally in the crypto sphere will be able to continue without Bitcoin, which remains stuck below the $60,000 level.


Technical Analysis

Ethereum continues to rally in a tight upside channel. All pullback attempts have been quickly bought in recent days, and Ethereum managed to maintain strong upside momentum.

Meanwhile, RSI has moved into the extremely overbought territory, and the risks of a pullback continue to increase. RSI is already close to the extreme highs that were reached back at the beginning of 2021. However, it should be noted that Ethereum had a short pullback in January of 2021 and quickly returned to growth after RSI moved closer to the moderate territory.

Today, Ethereum faced some resistance near $4370. A move above this level will signal that Ethereum is ready to continue its upside move. There are no strong resistance levels in the nearby as Ethereum is moving through record highs.

On the support side, the previous resistance at $4150 will serve as the first support level for Ethereum. In case Ethereum declines below this level, it will head towards the next support at $3775. A move below the support at $3775 will open the way to the test of the support at $3600.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker