Ethereum Trails BTC, But Fundamental Strength Likely to Drive It Higher
- Ethereum is showing some immense signs of strength today as the entire crypto market plows higher, with Bitcoin leading the way
- BTC was able to set fresh all-time highs today when its price rocketed to $20,800. Although it found some selling pressure here, it has not posted any harsh rejection
- Where the entire market trends in the mid-term should depend largely on BTC, as it has been guiding the price action seen by ETH and other altcoins
- One prominent Ethereum advocate is now noting that while the cryptocurrency is still trading well below its all-time highs, its fundamental strength is much greater than it was in 2017
- This means that the next rally could allow it to see some serious momentum that potentially dwarves that seen in years past
Ethereum and the entire market have pushed higher today thanks to Bitcoin’s decisive break above $20,000.
This level has long proven to be a strong level of resistance for the cryptocurrency. The break above it potentially opens the gates for the crypto to see significantly further upside.
This will undoubtedly create a tailwind for ETH, which could be further perpetuated by the fundamental strength that the cryptocurrency has established as of late.
Ethereum Rallies Past Key Resistance as Market Goes Parabolic
At the time of writing, Ethereum is trading up just under 6% at its current price of $622. This is around the price at which the crypto has found some serious resistance throughout the past couple of months.
The break above $620 is promising, but there is a possibility it will also face some resistance at $630, as this is where it found some serious selling pressure earlier this morning.
Where it trends next will undoubtedly depend on Bitcoin, which has been guiding the entire market as of late.
ETH Has Never Been Fundamentally Stronger
He pointed to a graph he made comparing key ETH metrics in late-November of 2017 to those seen by it presently.
“ETH first hit $500 on November 29th, 2017 during the late stages of the last bull market. Recently, ETH hit $500 again so I decided to track how a few different metrics have grown since November 29th, 2017.”
Image Courtesy of Anthony Sassano.
The coming few days should shine a light on just how potent Ethereum’s reaction to Bitcoin’s ongoing rally will be.
Featured image from Unsplash. Price data from TradingView.