Ethereum accomplished a new turning point this Thursday as its price nearly touched $1,700 for the very first time in history.
The ETH/USD currency exchange rate struck $1,699 on the Coinbase exchange after rallying 29.79 percent today. Traders gathered into the Ethereum market in the wake of its futures contracts’ launch on the Chicago Mercantile Exchange (CME) and the prospects of an impending supply crunch.
The gains likewise appeared as Grayscale Investments, a crypto-enabled investment firm in New York, purchased $70 million worth of Ethereum tokens, bringing its total holdings’ worth to $4.91 billion. The company’s crypto accumulation typically leads the cost higher, as the marketplace has experienced during its Bitcoin purchasing spree throughout 2020.
Grayscale just bougt $eth 47k and $ltc 12k 🚀 👍 pic.twitter.com/63kfouIfEn
—– Hendy Wiranata (@HieronimusHendy) February 3, 2021
Also, Grayscale’s accumulation indicate a boost in institutional demand for Ethereum. As the Bitcoin rally turned overheated after taping its record high near $42,000, traders/investors began exchanging their earnings for tokens with maximum long-lasting capacity. The period saw Ethereum, UniSwap, AAVE, and Chainlink log their all-time high levels.
Meanwhile, helpful technical signs also offered further tailwinds to Ethereum. The second-largest cryptocurrency’s newest advantage relocation had it broke above a short-term resistance level that, in conjugation with an upward sloping assistance trendline, constitutes an Ascending Triangle.
In retrospect, Ascending Triangle patterns are bullish extension signals in an uptrend. Traders generally wait for a high-volume cost breakout above the resistance trendline to put long positions at greater price levels. Preferably, the upside target can be determined by determining the flagpole’s length—– the upside relocation before the Triangle’s development.
Ethereum Triangle breakout is underway. Source: ETHUSD on TradingView.com Ethereum Triangle breakout is underway. Source: ETHUSD on TradingView.com In Ethereum's case, the height of
the flagpole that formed before the Ascending Triangle is a little over $ 700. On the other hand, the level from where the cryptocurrency broke out sits near $ 1,441. That ideally puts the Ethereum Triangle's upside target at $ 2,141. Ethereum Downside Risks The prospects of higher price levels met offsetting catalysts that could turn Ethereum lower. The major amongst them is a growing bearish divergence between the cryptocurrency's cost and its volumes and momentum.Source: ETHUSD on TradingView.com Ethereum's bearish divergence dangers putting its rate reduces. Source: ETHUSD on TradingView.com
It is due to the fact that bearish divergences signify a downturn in the ongoing momentum. Excerpts from Investopedia:
“& ldquo; Bearish divergences symbolize potential downtrends when costs rally to a brand-new high while the oscillator refuses to reach a brand-new peak. In this situation, bulls are losing their grip on the market, rates are rising only as a result of inertia, and the bears are ready to take control once again.”