In brief:
- Ethereum has ploughed through the $290 resistance level.
- $320 is the next big hurdle for Ethereum.
- With a bullish Bitcoin and crypto environment, Ethereum can recapture lost ground and reach levels last seen in the 2017/2018 crypto market season.
Ethereum (ETH) has exceeded the expectations of crypto traders and investors by zooming past what many thought was a brick wall in the form of the $290 resistance level. Furthermore, ETH has now set its eyes on the $320 resistance level as the Ethereum trade volume across exchanges continues to eclipse that of Bitcoin. The team at Kraken highlighted this fact in their daily market blog post earlier today.
The most traded pair of the day was ETH/USD, and the most traded asset was Ethereum. Bitcoin not being the most traded crypto asset or having the largest pair has not occurred since we have been tracking this blog in the fall of 2019.
Ethereum Still Has More Room to Grow
Compared to other altcoins that have had a fantastic resurgence in the market since the Coronavirus of mid-March, Ethereum still has room to grow as shall be demonstrated.
During the crash of mid-March, ETH fell to as low as $85 and is priced at $309 at the time of writing this. Ethereum has gained by a factor of 3.635x since then.
Comparing this performance in the same time period with other alt-coins with smart contract capabilities, we observe the following.
- Cardano (ADA) dipped to as low as $0.01746 and has now hit a local high of $0.154. This is a move of 8.82x.
- Zilliqa (ZIL) fell to as low as $0.00225 and had a local top on 11th June at $0.03. This is an increment by a factor of 13.33x.
- Another successful digital asset has been ChainLink (LINK) which dropped to as low as $1.365 in mid-March only to print an all-time high of $8.92 on 15th July, This is a move of 6.53x in gains.
Therefore, Ethereum might continue with its upward trajectory in the days and weeks to come. Even a 5x increment from the mid-March low will bring the value of Ethereum to around $425. Ethereum’s price at this level was last seen during the 2017/2018 crypto market season. The potential for Ethereum to grow was also captured by the team Santiment via the following tweet.
The top 100 market cap #blockchains in the past 30 days show that $ETH still has a long way to go to catch most other #altcoins. This is a positive sign for current #Ethereum holders, currently +16.3% in the last 30d vs. an avg. top 100 return of +32.7%. https://t.co/4XkgKfhO01 pic.twitter.com/Qa4FSku7fi
— Santiment (@santimentfeed) July 24, 2020
As with all analyses of Ethereum, traders and investors are advised to use adequate stop losses. Furthermore, the fate of Ethereum (ETH) in the crypto markets depends on Bitcoin and the general mood in the traditional stock markets. This is based on the fact that ETH is highly correlated to both Bitcoin and the S&P 500.