Ethereum (ETH) rate increased by 66% in one week. Factors and trends
December 24, 2018 @ 12:44 +03:00
Since December 16, within one week, the Ethereum price surged from $83 to $138, by just over 66 percent. As the price of Ethereum surged amidst a strong corrective rally triggered by oversold conditions, short contracts were squeezed out, allowing the price of the asset to recover. Although the Ethereum price has increased by 66 percent in a short period of time, it is still down 91 percent from its all-time high at $1,448.
FxPro analyst said that in traditional markets, a 20 percent drop from an all-time high is considered a bear market. As such, even with a massive corrective rally, Ethereum and the rest of the cryptocurrency market are in a bear market and struggling to recover out of it. A sudden breakout of major resistance levels can also leave an asset vulnerable to large drops in the short-term, especially if it cannot be sustained with high volume. Hsaka, a cryptocurrency technical analyst, suggested that Ethereum is a better asset to short because of its high volatility and recent rally. “Quite a substantial difference between the ETH and BTC structure. If you were betting on correlation remaining the same, and both reverting to structural equilibrium, $ETH seems to be the better play for shorts, and BTC for longs,” the analyst said.
Currently, a cryptocurrency trader with the online alias “The Crypto Dog” explained that Bitcoin is facing several major resistance levels in the range of $4,000 to $6,000 and until the dominant cryptocurrency breaks out of that range, it is difficult to call a bottom in the cryptocurrency market. Prior to Ethereum’s 66 percent rally, the Bitcoin Cash price tripled from $75 to $238, and the price of Bitcoin surged from $3,210 to $4,000. Major crypto assets have been demonstrating strong daily volumes, with the daily volume of the crypto market surpassing $20 billion. As long as Bitcoin and Ethereum can sustain their volumes, small market cap cryptocurrencies are likely to follow the price trend of the two digital assets.
What Triggered Ethereum to Rise 66% Within 1 Week? Factors and Trends, CCN, Dec 24