Ethereum Breached $ 2,000 As the Crypto Rally Continues Over the Weekend
The cryptocurrency market has been surging, at least since Q4 of last year, with some cryptos joining the rally later, in January or even February of this year. Ethereum started the strong bullish run in November last year, while this year the bullish trend turned into a proper surge, which has pushed Ethereum around $ 1,700 higher early November.
There have been retraces lower during this time, but moving averages have been doing a great job working as support during these pullbacks, stopping the decline and reversing the price higher. This means that they have been great places to buy ETHEREUM for those who are trading Ethereum, which must be buyers, otherwise they would be loosing a lot of money as the surge continues.
The bullish momentum has been continuing during weekends as well, with the cryptocurrency market remaining open 24/7, showing that the buying momentum is really strong. Yesterday the price moved above $ 2,000, which is another milestone for this digital currency to breach.
We saw a reversal and a quick dip after that, sending the price more than $ 200 lower, but the pullback ended at the 100 SMA (green) on the H4 chart once again. Ethereum bounced off that moving average which stood just above $ 1,800 and is trading now around $ 150 pips higher. This again shows resilience, as buyers are jumping in at every opportunity that arises.
Although, the big question which is haunting everyone is when will the decent pullback come? In the 2017 crypto rally, BITCOIN peaked just as Bitcoin futures were launched. The launch of the first Canadian ETF on Thursday had incredible success. It was the highest-volume ETF in the country on Day 1 and then traded another 40% more on Day 2.
AUM is now up to $421 million, which is still smallish compared to the Bitcoin universe but it’s a sign that a US ETF, which is coming, will be very well received. So, that might be the moment we will probably see a decent pullback. But with such a strong bullish momentum that’s not certain either. I think the trade right now is to hold the buy positions, at least until the US ETF launch. If there is a decent reversal down after that, then it would be a good opportunity to look for other buying opportunities when the Ethereum starts becoming oversold.