Key resistance levels have been broken by Ethereum over the past few hours and they could catalyze markets into bigger move according to a leading industry figure.
Ethereum Breaks Barrier
ETH prices have reached a level not seen since late September 2019. It has seen the largest sustained move higher since last year’s rally began in April and the key $200 psychological barrier has finally been broken.
According to Tradingview.com Ethereum tapped $207 a few hours ago, its highest price for almost nineteen weeks. Over the past 24 hours ETH has made almost 9% as the bulls gather strength.
Since the beginning of the year Ethereum has gained a whopping 58% outperforming bitcoin and XRP by a clear margin over the same period.
There have been huge gains in DeFi markets which are predominantly based on Ethereum and attractive interest rates are luring in more investors to this nascent financial ecosystem.
The move has not gone unnoticed by Galaxy Digital’s Michael Novogratz who stated that higher prices are making him more bullish;
“$eth over 200 for a couple of days will open a bigger move. $btc has 10k looming. Once that goes we are off to the races.”
Crytpo is bid. Period. Hearing more and more inquiry. Always dangerous but higher prices are making me more bullish. $eth over 200 for a couple of days will open a bigger move. $btc has 10k looming. Once that goes we are off to the races.
— Mike Novogratz (@novogratz) February 6, 2020
These are key price levels that, once turned support, will serve as a springboard for greater gains. This is especially the case for Ethereum which is still 86% down from its all-time high.
As a consequence ETH prices may be seen as more attractive with greater potential for gain than say bitcoin which has already recovered to within 52% of its peak.
Novogratz continued to add that bitcoin has found a place as a weapon in macro portfolios as digital gold – a hard asset.
“ETH might be the trust level people build on. If it does, it’s a great bet.”
There is a lot of momentum for ETH at the moment, probably due to its low price.
If the ratio on ETH/BTC corrected to the prior all-time levels, ETH should be worth around $1800 today.
With ETH breaking it's downward channel, it's only a matter of time (in my opinion) before the ratio makes ETH extremely attractive to those beyond holders of last resort.
— Omar Bham (Crypt0) (@crypt0snews) February 5, 2020
Ethereum will have a huge year in 2020 with Phase 0 of proof of stake launching, more trust in the ecosystem, and major growth expected for DeFi markets, all of which are bullish for ETH demand.
Altcoins In Front
Bitcoin dominance is dwindling as a result and it has now fallen to its lowest level since July last year at just over 65%.
This is also a key indicator for the health of altcoin markets, especially the high cap, high liquidity tokens such as ETH.
Overall, crypto market cap has gained $13 billion over the past 24 hours and altcoins are the driving force at the moment.
How high will Ethereum run this year? Add your predictions below.