Ethereum, Bitcoin and other cryptocurrencies continue to trade well, with the largest gains seen in a year.
In fact, many of them have just hit new all-time highs or just below the highs reached earlier this year. This prompts many to ask what will happen next with this group of assets.
For Ethereum, the cryptocurrency has a more recent catalyst – NFT. The market for NFT – or non-fungible tokens – is gaining momentum.
We’ve seen athletes like Eli and Peyton Manning, artists, musicians, producers, and more get in on this as the market suddenly picked up steam.
In the NFT market, money is not king, but Ethereum. This is the currency in which buyers pay and the currency that sellers accept as payment.
I think this helps keep the rate in Ethereum and may even serve as a catalyst to raise it. Let’s look at the graphs.
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Ethereum has been forming a wedge over the past few months but eventually resolved higher as bulls bid higher in eight of its nine trading sessions starting in late March.
I like the diagram on the chart for several reasons. First, the stock broke through the downtrend resistance (blue line) and surpassed the key $ 2,000 level and the former all-time high.
I also like that Ethereum has returned to the 10-day moving average and the previous resistance zone between $ 1950 and $ 1975 and has held that area as support. This is an important bullish trend.
With all of these developments – plus the bounce above $ 2,000 – the bulls still have momentum amid this healthy pause.
From here, bulls can use this week’s low as a warning point. Movements below $ 1930 and possibly more to follow. If the 21-day moving average is not meeting demand, there are several measures that should act as sufficient support.
Specifically, I’m looking at the top of the former downtrend resistance, as well as the 50-day and 10-week moving averages.
On the other hand, notice the move above the recent resistance around $ 2,145. The above opens the door to 161.8% growth around $ 2,250.
Until trends reverse and Ethereum falls below key pivot points, it is wise for investors to remain optimistic. If they are skeptical, it is okay to remain neutral. However, the trend is our friend until it bends, and right now the trend is not in favor of the short side.