Ethereum before Bull Run
After a strong recovery phase, the “Smart Contract” coin is about to reach the important USD 200 limit. Ethereum’s market cap has climbed above the USD 20 billion mark in the past few days and the gap to its pursuers remains rock solid. But how can ETH survive the upcoming Bitcoin Halving without disappearing into oblivion? We take a look at the current situation.
Focus on the Ethereum Chart
At the time of writing, ETH is quoted at USD 197.07, a daily gain of 0.27%. After a turbulent previous week, the major cryptos are entering a consolidation phase. However, this situation could change quickly. Currently we can observe a chain reaction. The alternative assets are looking at Bitcoin, which in turn is looking at the traditional markets. An increasing correlation to the major stock indices is accompanied by a decreasing volatility in the crypto space. This should not be confused with market stability. Price fluctuations in the double-digit percentage range can return abruptly.
These limits become important now
From a bullish perspective, the next resistance level for Ethereum is at the important USD 200 mark. The bulls failed here several times in the previous week. The long-term resistance at USD 187 has been sustainably overcome and this is where the new support base lies. Should the USD 200 mark fall in the coming hours/days, the next resistance would be at around USD 211.
Bitcoin as a driving force
A Bitcoin Dominance Index of 63.7% speaks for itself. The Altcoins can only occasionally isolate themselves from the No.1 crypto currency. However, in the current market situation, this is not too bad, as the BTC is performing excellently. Compared to other markets, the crypto space was able to recover very quickly from the consequences of the coronavirus pandemic. Ethereum and Co. were able to use the slipstream of Bitcoin for their own share price gains. However, the upcoming halving event could change this development.
Bitcoin Halving divides opinions
Record levels of searches, an inflation rate of less than 2% and a Bitcoin exchange rate of over 10000 USD… These are just a few of the countless forecasts that are being made by the media these days. The third Bitcoin Halving Event is just around the corner. In about 14 days the miners’ coin rewards will be halved. But what effect will the highlight have on the Altcoins? Can they continue to cling to the Bitcoin and participate in a possible bull run? There is no clear answer to this question. But it’s worth taking a look at the respective fundamentals. And these are very promising at Ethereum.
Good reasons for an ETH bull run
With Ethereum 2.0, Vitalik Buterin’s team could open up a new way for the crypto community. The long awaited change from Proof of Work to Proof of Stake is a major project, an exact date for the release is not yet available. In the short-term chart, however, many indicators are already pointing to a sustained ETH bull run. The Bitcoin is performing well and Ethereum is scratching the important USD 200 mark after breaking the 50-day resistance. The fact that the ETH price is more than 75% below its all-time high shows the enormous potential of the crypto currency.