Ethereum Altair Update Launched, New Highs Set
ATH Broken. It’s Ethereum’s Time to Shine!
by Bogdan Giulvezan
On October 29, the second-largest cryptocurrency by market cap broke its previous All-Time High and set a new one at $4,405. The previous top is located at $4,373 and was reached on May 12 this year.
If we compare the two, we can see that the Relative Strength Index was way above its 70 level when the first top occurred, thus a retracement was imminent. On the other hand, the most recent top is not overbought according to the same indicator, and price looks to be on its way higher.
As a rule of thumb, when a cryptocurrency breaks its ATH, it tends to continue on the bullish path and if this is the case with Ethereum, we will probably see a climb to $4,500 in a few days. But we all know how volatile the crypto market is, so we cannot exclude any scenario.
Ethereum’s “big brother” Bitcoin reached a new ATH on October 20 but it has been retracing ever since, contradicting the rule of thumb mentioned earlier and confirming that nothing is set in stone in the crypto space.
Last Friday the U.S. Securities and Exchange Commission (SEC) approved ProShares’ Bitcoin futures ETF, which marked a breakthrough for the industry but the flagship currency couldn’t sustain the initial bullish reaction and erased the gains. However, in the long run, the launch of the futures ETF is a good thing for Bitcoin and according to ProShares this is “an opportunity to gain exposure to Bitcoin returns in a convenient, liquid and transparent way”.
For now, it looks like BTC has created fresh support at the $59,000 level because it returned above it after a brief dip. This false break may be an incentive to buy, but price action shows signs of indecision, which makes it safer to take the cautionary route and wait for a clearer picture.
Chart Analysis – ETH/USD
Ethereum is currently trading at $4,350 and benefits from yesterday’s huge green candle that engulfs several red candles, showing increased bullish pressure. This suggests that the current leg of the uptrend is not finished and that upside price action will still follow, but on the other hand, we have a few bearish signals as well.
The MACD lines are already close together, indicating diminished momentum, and the RSI is showing bearish divergence. This occurs when price is making a higher high (which is the case now) but the indicator only prints a lower high, indicating that a move down will likely occur.
If this is the case, support is located at $4,000, a level that rejected price yesterday, so we know that price reacts to it. To the north, the levels to watch are the big round numbers (BRN), such as $4,500, $5,000, and the smaller ones in between.