During the past month, Ethereum (ETH) has surpassed most other major cryptocurrencies to become the best performing asset in the context of a sharp increase in Bitcoin price.
As of February 1 – in just 19 days, the ETH price has risen 60% against the USD, from $ 185 to $ 280.
What drove the price of Ethereum up?
According to global market analyst Alex Krüger, Ethereum's average trading volume (volume) in the past 7 days is four times higher than it was in the second half of 2019.
He to speak:
“The average ETH volume over the past week has been 4 times larger than the average volume in the second half of 2019. Someone bought a lot of ETH.”
When the volume of an asset rises in tandem with the price, it means that the demand for it is increasing and represents a bullish market structure.
This indicates seriously that Ethereum's rise is not entirely manipulated as some whales do – as Joe007 points out.
It is likely that when the price of Ethereum started to rise in late January thanks to fake orders – which some whales consider an attempt to manipulate, the cryptocurrency investors have started buying.
The continuous increase in volume along with various fundamentals, such as a sharp increase in decentralized financial activity (DeFi) and accumulation in spot markets, suggests that Ethereum is about to Entering a sustained uptrend.
Trader is optimistic about ETH
Since the first week of January, Ethereum has been ahead of Bitcoin and the rest of the cryptocurrency market.
By 2020, if the Bitcoin price maintains its momentum and tests higher resistances in the short to medium term, traders expect ETH to be one of the best performing assets on the market.
If major cryptocurrencies like Bitcoin dropped by at least 50% from their all-time high (ATH), the ETH price would have dropped by 94% compared to the ATH of 2017. Even after an increase of 60% , ETH is still down more than 80% compared to its ATH in 2017.
With Ethereum theoretically being oversold on a macro level and the use of blockchain-based applications like DeFi is witnessing the boom, traders are still confident about the rise of ETH.
While the altcoin market relies on Bitcoin to maintain its momentum, as long as Bitcoin retains key support levels like $ 10,000, technical analysts expect strength in the altcoin market.
Crypto trader Satoshi Flipper wrote:
“Chainlink and Tezos will be the darlings of the bull market / altcoin season. They will constantly outperform other names. And as long as BTC works well, I'll stock up on each sale and won't think about selling until the year goes well. ”
Reputable traders like Angelo – who is rumored to be trading large amounts of Bitcoin – have also shown that they don't want to sell Bitcoin and other cryptocurrencies until they reach new highs next year.
With the halving event that Bitcoin is ahead and whales “releasing” in reluctance, the overall sentiment of the cryptocurrency market is positive.
Maybe you are interested:
Join our channel to stay up to date on the most useful news and knowledge at:
According to CryptoSlate
Translated by ToiYeuBitcoin