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Major Cryptocurrencies Record Strong Gains, Ethereum Price up 7%, Bitcoin at $9,300

Last Updated March 4, 2021 5:07 PM
Joseph Young
Last Updated March 4, 2021 5:07 PM

The cryptocurrency market has recorded strong gains once again over the past 24 hours, as the valuation of the market broke the $440 billion, moving one step closer to the $0.5 trillion region. Bitcoin, Ethereum, Cardano, Bitcoin Cash, and other major cryptocurrencies demonstrated large short-term gains.

Ethereum Leads Market

The price of Ether, the native cryptocurrency of the Ethereum blockchain network, has surged 7 percent on May 3, experiencing several buy spikes over the last 12 hours. The strong performance of Ether led to big gains, as WanChain, Golem, and Ontology demonstrated daily gains in the range of 10 percent to 50 percent.

Triggered by the listing of Bithumb, the biggest cryptocurrency exchange in the South Korean market, the price of Golem (GNT) increased by more than 50 percent against the US dollar and 47 percent against bitcoin, which recorded an increase of 3 percent of its own.

Immediately after the listing of Golem by Binance, the world’s largest cryptocurrency-only trading platform, the price of GNT plunged by more than 20 percent, as traders bought the rumor and sold the news. A similar trend with the recent Bithumb listing is expected and GNT will likely experience a correction in the short-term.

Often, the price trend and momentum of Ethereum represent the status of the token market, as tokens like WanChain and Golem are based on the Ethereum network’s ERC20 token standard. A strong performance by Ethereum usually translates to strong gains of tokens and on May 3, tokens have followed the trend of Ether and recorded large gains against both bitcoin and the US dollar.

Solely based on the trend of the token and alternative cryptocurrency (altcoin) market over the past two weeks, it can be said that the altcoin season is back. Tokens have demonstrated 20 to 50 percent gains against bitcoin and other major cryptocurrencies such as Ethereum and Ripple, and the majority of tokens are still showing strong momentum.

Citron Research, a team of analysts behind the well-known short seller Citron, said that they expect the price of Ether to fall before bitcoin, and will be shorting the price of Ether in the short-term. However, it seems unlikely that the price of Ether falls by big margins in the next few weeks, as Ethereum has performed relatively poor against bitcoin and other major cryptocurrenies since early April and it is difficult to see the value of Ether continue to decline against major cryptocurrencies and tokens.

Andrew Left, a researcher at Citron, said: 

“I’d rather short ether. I think both [bitcoin and Ether] are bubbles. If I were going to be wrong about one of these, it would be bitcoin.”

Bitcoin Trend

Both the Relative Strength Index (RSI) and Williams’ Percent Range (WPR) of bitcoin signify that bitcoin is currently is in a neutral zone and is demonstrating neither overbought or oversold conditions. The exponential moving average of bitcoin also show a strong short-term trend, placing bitcoin in an ideal position to secure its current position in the $9,300 region and potentially increase in value in the next 24 hours.