- Summary:
- Institutional interest drove Ethereum prices on the ETHUSD pair up by 50% in 2 days, but 2 lower highs indicate a short-term correction may be in the works.
Ethereum pulled off a 50% rise in two days as institutional funds poured into the asset, now considered as the cheaper and more viable alternative crypto investment to Bitcoin.
Bitcoin prices are at least 50% above their 2017 all-time highs, while Ethereum is still about 25% short of this level. However, there is no doubt that the altcoin rally season is here, which makes Ethereum a very good proposition for those who want value for less money.
Also driving the Ethereum rally are institutional firms, who are pulling out of Ripple and rebalancing their crypto portfolios by adding more Ethereum. Grayscale Digital Large Cap Fund is one of those hedge funds which has done just that, according to a report by Cryptonews.
Technical Levels to Watch
The price to beat for buyers is 1219.18 (22 January 2018), which remains the immediate target to the upside in the short term. Today’s price move has been as a result of heavy choppy action, with bulls appearing to have the upper hand with a 2.35% gain. However, the lower high of the daily candle suggests bullish exhaustion.
If this is the case, this suggests the possibility of a correction. A possible downside target that could serve as the initial target for such a corrective move would be this week’s low at 980.40, which also corresponds to the high of 12 February 2018. The 26 February 2018 high at 894.59 could also come in as the next possible target, followed by the 30 April 2018 high at 827.16.
On the other hand, if bulls manage to pull off a breakout above 1219.18, then the all-time highs at 1419.96 becomes the next logical target.
ETHUSD Daily Chart
