Ethereum breaches a crucial level which could eventually boost XRP and Bitcoin as well after a few days of stagnating as we reported in the ETH news previously.
Ethereum registered strong gains over the past 48 hours as it increased by 7% in the past 24 hours. ETH trades at $220 at the time of writing while Bitcoin, by comparison, is up by 3.5% over the past day. The cryptocurrency is now trading 6% below the late-April high. Some analysts see this sign as a weakness in the crypto market but others believe that it’s a sign that Bitcoin could soon start a fresh year-to-date high. With the latest price upswing, Ethereum breaches a crucial level but the rally wasn’t quite as explosive.
The partner of Bitcoin hedge fund Bitazu Capital Mohit Sorout, shared some charts to illustrate the price movement. The chart shows that Ethereum breached the downtrend move that formed during April’s surge to $227 and the level held as resistance on few occasions over the past few days while ETH broke past it in a very convincing manner. Ethereum closed above the downtrend on the candle which indicated that it is now officially invalidated. As the analyst noted, Bitcoin didn’t have the same luck, as per the ETH news reports.
The number one cryptocurrency is still trapped under a similar downtrend that is formed after the late-April increase in price. As Ethereum led Bitcoin higher during the 2020 rally, the chances are Bitcoin is about to break past this level which can be seen in Sorout’s chart as well. If this is about to happen, Bitcoin could reach $10,100 in the upcoming days and it could boost XRP further as well. The fundamentals support these expectations of an imminent breakout. One prominent analyst and investor explained that bitcoin’s post-halving price, the action looks similar to that seen after the 2012’s and 2016’s halving:
“This capitulation is almost identical to the 2012 and 2016 halving capitulations (all within 21 days of the halving). This is a massive bull flag. The rallies from the Hash Ribbon Buy were almost vertical.”
Also as recently reported in our Ethereum price news, the largest altcoin by market cap needs to play a major role before it merges with the Ethereum 2.0 (ETH 2.0).
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]