Ethereum has reached a new all-time high after crossing a psychologically significant threshold of $4,000 per coin for the first time ever.
Candlesticks
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom.
If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 35 white candles and 15 black candles for a net of 20 white candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Ethereum was up around 4% on Monday morning to trade at around $4,130, according to Knightsbridge data. It took the world’s second-largest cryptocurrency just one week to add nearly $1,000 to its value. The price of ethereum has more than quadrupled this year alone, outperforming its closest rival, bitcoin.
The latest rally boosted the digital asset’s market value to over $476 billion. That puts ethereum’s market capitalization almost on par with the largest US bank JP Morgan and higher than that of pharmaceutical giant Johnson & Johnson.
However, ethereum’s market value is still far behind bitcoin’s, which currently stands at $1.1 trillion.
Some analysts predict that the price of the world’s second-largest cryptocurrency may rise even more. According to market research firm FundStrat, ethereum may hit $10,000 this year, while bitcoin’s price could reach $100,000.
