By Alicia Maher
Ethereum soared above the $4000 mark on Monday after the significant drop over the weekend. However, for ETH to increase further soon, it must stay above $4,150.
The price of Ethereum has constantly been outpacing other cryptocurrency assets, as Bitcoin and other coins struggle to recover from the recent market losses. Although ETH crashed below $3,400 over the weekend, it still holds firmly against BTC clocking a three-year high on the ETH/BTC chart.
The weekend drop ETH’s price became its lowest since early October. However, on the 10th of November, ETH achieved an all-time high of over $4,800.
Ethereum Price Builds Momentum
Both Bitcoin and Ethereum have been at their all-time high before the weekend, with Bitcoin achieving a record high of $68,000 in November. However, Bitcoin saw a significant dip in price on Saturday, falling below the $50,000 mark.
But in contrast to Bitcoin, Ethereum’s year-end progress looks very promising. On the 1st of December, the coin rose to a record $4,868 even though the current price of an Ether coin is about $4,477.
However, ETH is gradually triggering its 20-day Exponential Moving Average(EMA). This means that Ethereum is taking control of the bulls. If the bulls take their turn, then the price of ETH is likely going to soar above the $4,868 mark.
On the contrary, Bitcoin’s 20-day Exponential Moving Average is moving rather sluggishly, trying to attain the $58,463 mark since the 30th of November. Although, Bitcoin investors are trying as hard as possible to drive up the coin price through buying. If they are successful, it would further reduce the buying pressure. But if the selling pressure is not reduced, BTC price could plunge further down to about $54,343.
Dips Involved with ETH
Investors should, however, take note that if Ethereum fails to increase above the $4,400 mark in the coming weeks, it could lead to a downside correction. The initial support of the downside is closer to the $4,300 mark.
As with any long-term investments, industry experts generally advise people to ignore the highs and lows, but the latest spike in the price of Ethereum doesn’t mean its unstable nature has gone away.
The falling prices result from new comments published last week from SEC Chairman Gary Gensler about the regulation of cryptocurrency, the $1.2 trillion infrastructure bill signed by US President Joe Biden detailing numerous cryptocurrency tax reporting, and growing concerns over the new Omicron variant.