Recently, Ethereum keeps on recording new gains, linked to the increased demand for digital assets. The sell-off season might be gone, with traders anticipating new highs from the crypto with new purchases. Some of the asset’s investors strictly take the crypto for short-term purposes, causing an unusual price fluctuation due to the impulsive buying and selling pressure.
Cryptos’ volatility makes them sustainable to even the littlest shifts in the industry. The volatile nature also makes it easy to record new gains over a short period. A UK body warned British investors against the asset class’s investment because of the high-risks associated with the purchase. Many new traders don’t understand cryptocurrencies, and this causes them to make significant moves based on the asset’s price fluctuation.
Ethereum faces consistent price fluctuations
Many traders reveal that asset has been continuously changing within the $1,200 and $1,400 mark. Presently, Ethereum’s resistance is around the $1,600, $1,800, and $2,000 price marks. In comparison, the support remains at the $1,000, $900, and $800 points.
The nearest support is $1000, so if Ethereum fails to overcome its resistance, it could correct towards the $1,000 range. Technical indicators show that the asset’s rise and fall might indicate a possible price surge.
The 14-day and 50-day moving averages move in close range, while the latter is below the present support. Based on indications, investors are now buying assets, thereby increasing the demand for the asset. The consolidation indicators also show that bullish activities could be losing their steam. The asset needs an intense price action to record new gains presently.
Also read:It indicates that market bulls must not sell their holdings even if the asset shows a short-term gain. On the flip side, the bears might drive the price to an indefinite range. If the bears finally take the step, it could cause indecision amongst traders, hence more falls and rises.
Ethereum and Bitcoin’s position
In terms of price-weight, ETH has a higher weight when compared to Bitcoin. The latter, which values around the $30,000 range, still has a bigger market capitalization and higher value than Ethereum.
The Bitcoin trend, which lasted past the end of 2020, helped the digital asset record new highs, resulting in more interest from both institutional and retail traders. The asset, which many investors use as a hedge, is consistently gaining exposure while attracting new buyers, especially since the pandemic.
2020 significantly helped the digital asset industry, with people searching for different investment portfolios, which would survive against worst situations. Fortunately, many people benefited from the price gains, thereby improving the cryptos’ global outlook.
Other altcoins like Ethereum and Litecoin also recorded new gains, especially since BTC’s $30,000 surge in December, showing a rapid increase, just some days away from hitting the $20,000 mark.
Ethereum would likely surge due to the present market structure, which would allow new gains if the market bulls stay committed to hitting the $1,500 mark. Once the price hits $1,500, a bull run would likely follow, with new investors sensing a bullish rally, leading to higher prices.
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