Ethereum
Ethereum price (ETHUSD) is in a holding pattern as traders wait for another catalyst. The second-biggest cryptocurrency is trading at $395, which is at the same range it was last week. Other cryptocurrencies are in the green, with Bitcoin price up by 3% and Ripple price up by 2.10%. In total, the market cap of all digital currencies has jumped to more than $365 billion.
The price of Ethereum has been in an upward trend in recent months. It has soared by nearer 110% in the past three months, outperforming Bitcoin, whose price has risen by just 40%. The same trend has happened this year, when the price has risen by 90% compared to Bitcoin’s 9% gain.
The recent rally has been mostly because of ETH 2.0 upgrade and the huge demand in the Decentralised Finance. The ETH 2.0 is the biggest upgrade in the Ethereum history and will change how ETHs are distributed to the community. It will do this by moving from proof of work to proof of stake.
DeFi, on the other hand, is a process in which developers are creating payment platforms using Ethereum’s infrastructure. As I wrote last week, the value stored in DeFi has risen from $1 billion early this year to more than $4 billion. Now, with all these currently priced-in, Ethereum price is probably waiting for the next catalyst.
The daily chart shows that Ethereum price has found a lot of resistance after reaching the important level of $400. This resistance is mostly because of the uncertainty between bulls and bears in the market.
As a result, it has created a pattern that is known as bullish pennant, which is shown in black below. The bullish pennant pattern is usually a bullish continuation, which means that the price is likely to continue rising after the consolidation ends. If this happens, the next resistance level will be $450.
On the flip side, a move below the lower side of the pennant at $362 will invalidate this prediction. A drop below this price will imply that there are still sellers in the market.