Ethereum’s bounce upwards continues with an increase of 5% today, and it is now revising the highs it had abandoned in September, a period that coincided with the declarations of the Chinese government. Ethereum thus goes beyond the medium-long term resistance, levels that were being monitored carefully.
For the sixth day in a row, the market has achieved a further upturn by increasing its performance since the beginning of the year and extending its gains from the mid-December lows. An excellent signal for the altcoins which for several months had left the glory to Bitcoin.
Bitcoin, with today’s climb of 1.5%, is not among the best of the day. Besides Ethereum, the other best among the big ones is Binance Coin (BNB), which gains 10%. Same increase for TRON (TRX), which, however, is not able to maintain the 11th position, conquered instead by Tezos (XTZ) by a few million. In 10th position, there is Cardano (ADA), separated from the other two by some tens of millions of dollars.
The first negative sign is that of Ethereum Classic (ETC), in 15th position, which loses 6%. The decline does not affect the increase that ETC had experienced last week.
This is the sixth consecutive week with higher lows, an event that had not occurred since March 2019, when it had a much lower intensity. When considering the lows at the beginning of the year, BTC gained 45% and Ethereum 80%, while instead, the performance of March 2019 stopped between 20 and 30%. To find a similar intensity it is necessary to go back to October 2017, during the hype of the speculative bubble that had characterized that period.
Volumes continue to rise and push over $130 billion, levels seen a few times in the last three months.
Today’s rise brings the market cap close to 280 billion dollars, a level it has not seen since last August. The credit goes largely to what is happening with the altcoins, since the capitalization of Bitcoin while returning to highs close to $180 billion, remains at the level that BTC had in September. As a result, there is this temporal lag of a month that shows that the recovery of these weeks is driven by the sharp rise in altcoins.
On a YTD basis, there are only positive signs with double and even triple-digit rises in the top 50. This confirms that 2020 started with the right pace, and also puts the last quarter of 2019 behind it, which statistically gave a negative signal, while the 4th quarter of the year shows a positive performance.
Bitcoin’s dominance is hardly maintained above 64%. This is due to Ethereum, which flies and returns to October’s high of 8.7% market share. Ripple maintains 4.4%.
Bitcoin, with the leap of the last few hours, is pushing above the $9,800 threshold, one step from $9,900 and the psychological threshold of $10,000. These are levels that BTC missed with the rise at the end of October. Now a test of strength accompanied by volumes will be needed over the weekend.
Bitcoin confirms the breakage of the bearish dynamic trendline at the end of January. It is now important to keep the $9,000 in the coming days to demonstrate the ongoing consolidation.
Only a sinking under $8,800-8,500 would affect the uptrend that is becoming more and more consolidated and that from the lows of the beginning of the year sees Bitcoin gain about 37%.
The bounce of Ethereum (ETH)
Ethereum has one of the best rises of the last year. Such a vertical movement for the price of ETH dates back to last May when in a few days it had achieved a 50% bounce.
What is happening with Ethereum brings prices up 80% from mid-December lows. This was a long-awaited signal by the community, which would give a turning point in a medium-long term perspective if prices were to go beyond 225 and then to 240 dollars in the next few hours.
It is necessary to consolidate the movements in the coming days. For ETH, the downward reversal would only occur with prices below $175, currently far from the current $225 touched in recent hours.