Investors from the world of crypto-currencies have been watching Bitcoin over the past week as a surge that started on Tuesday in Asia ended up with the world’s top digital asset more than 25% higher by the weekend.
On Monday, it was the turn of the second largest crypto-currency, Ethereum.
From a weekend price of just below US$165, Ethereum came alive during Asian trading on Monday morning when it added more than 10% to reach a high of $185. This is the highest price the contract-based blockchain platform has been since November, when the market collapsed.
The price move means, from a technical analysis perspective, that Ethereum has reached a level of “market critical resistance,” as it has now passed its 200-day moving average indicator that is used by analysts to determine long-term trends. When the price crosses this indicator, that for Ethereum has been down since early 2018, it is considered a bullish signal that the long-term trend may be about to change.
Bitcoin crossed its 200-day moving average last week when it reached $4,700. BTC has since added to that by reaching $5,300 in early trading on Monday, its highest level this year. Those in the bullish camp say Bitcoin could continue all the way up to its next major resistance level at $6,000. Likewise with Ethereum, which could reach $200 if it can cross over and stay above the 200 MA.
The rally has been even bigger for some of Bitcoin’s smaller siblings such as Litecoin and Bitcoin Cash. These two have more than doubled in price this year and have been among the top performing assets in the industry. Analysts have been looking towards Ethereum and Ripple’s XRP token for similar action but their movements, in comparison, have been sluggish.
Ethereum has been bashed a bit by the media recently as rival platforms EOS and Tron have outperformed it in terms of decentralized application usage. Analytics website dappradar.com, which ranks dApps in terms of volume and usage, also puts these two platforms way ahead of Ethereum.
Fundamentally, however, Ethereum is a seasoned and serious market player and will be even more so when long-awaited scalability solutions are rolled out in its next major upgrade.
According to this tweet from industry insider Anthony Sassano, Ethereum has moved a long way, in terms of developer skills and transactions and network operability, from where it was when it first broke above the $150 price point back in May 2017.
Founder Vitalik Buterin is also confident that the next big upgrade to the platform, dubbed Serenity, will do wonders for its performance and adoption. At the time of writing, Ethereum was in the top 30 crypto list and the top performing asset.
Ethereum is now at a pivotal level. Where it goes from here could be determined by how strong its market rally is this week.