In the past 24 hours, the Ethereum price has increased from $124 to $141 by 13 percent against the U.S. dollar. Analysts foresee a strong short-term recovery ahead as the crypto market shows momentum.
The optimistic price movements of major crypto assets in the likes of Ethereum, EOS, Bitcoin Cash, and Binance Coin have come during a period in which the sentiment in the near-term performance of the crypto market has become noticeably gloomy.
On February 17, prior to the recent rally of the crypto market, a cryptocurrency trader with an online alias “Mayne” stated that investors cannot remain bear-biased solely based on the past performance of the market.
“We’ve had some bullish moves on ETH, BTC, and altcoins over the last 2 weeks. Is the bear market over? Maybe, the fact of the matter is we are going up. Traders must see PA for what it is and can change bias quickly. If you have been stuck with a bearish lense you are missing out,” the trader said.
Throughout the past several months, Bitcoin and the rest of the cryptocurrency market have shown similar patterns; Bitcoin would endure weeks of stability and plunge by 5 to 10 percent thereafter.
But, while the historical performance of crypto assets is a useful reference, it is not a guarantee of future performance.
Since early February, for well over two weeks, cryptocurrencies have recorded an extended period of stability.
Because the cryptocurrency market had experienced extended periods of low volatility in the past several months and each one led to a dip in the valuation of the crypto market, many traders expected the trend to continue.
However, on February 18, fueled by the sudden surge in the price of Ethereum, the crypto market initiated a recovery and alleviated significant pressure from the market.
Previously, a cryptocurrency technical analyst known as DonAlt stated that Ethereum is in a viable place to outperform BTC in any time frame.
“I’m incredibly bullish on ETH for the next few weeks. I’d get a cardboard Vitalk cutout if I could just so I have it by my side 24/7. No matter what BTC does ETH will outperform the market in my mind. I’ll use dips as giant buying opportunities,” the analyst said.
Following the 12 percent surge in the price of Ethereum, DonAlt added that the movement was controlled and it is currently at a key resistance.
Cautious on the prospect of Ethereum breaking out of important resistance levels in the near-term, DonAlt said:
“Well, this is a proper moon. Not a big liquid spike but rather a nice controlled walk up. Didn’t expect quite this much action into the weekend but I’m not complaining. ETH as the top gainer on BitMEX. Right at resistance here – will be interesting if it can break through or not.”
While alternative cryptocurrencies have historically outperformed Bitcoin when the dominant cryptocurrency demonstrated a sideways movement, the magnitude of the gains demonstrated by tokens surprised investors.
Tokens such as Basic Attention Token, Bancor, Golem, and Maker have recorded gains in the range of 8 to 12 percent against both Bitcoin and the USD on the day.
If major crypto assets continue to break out of long-term trendlines and show positive technical indicators, the digital asset market could see the recent corrective rally extend throughout February.
Still, traders remain cautious in declaring a bottom in the cryptocurrency market due to the lack of daily volume and the inability of Bitcoin to surpass key resistance levels.
Click here for a real-time ethereum price chart.
Featured Image from Shutterstock. Price Charts from TradingView.
Last modified: May 20, 2020 12:41 PM UTC