Ethereum won’t be left behind in the bull run that has taken hold of the crypto market. Traders today are continuing to push the price up, taking ETH above $1,215 per coin. It’s the second most bullish candle ever recorded for the price of ETH since its all-time high of around $1,400.
The only time Ethereum closed above this threshold with a bullish daily candle was on January 27, 2018. At the time, a failed price correction then initiated one of the worst price declines in the history of the crypto market.
But that was then and this is now. Optimistic traders and investors have been overcome by Bitcoin's positive momentum, and as a result have kept the cryptocurrency in an upward trend since early 2020.
The beginning of the new year, however, has likewise seen a boom for the most important altcoin in the market in terms of price performance.
Ethereum’s market growth has been exponential: it went from $737 per coin to its current price in less than a week. Not bad for a bunch of DeFi degens.
Technical indicators show that there is still plenty of room to grow, although the relative strength index (RSI) is at dangerously high levels. A high RSI indicates that traders are currently rushing to buy the cryptocurrency. That could mean that they will want to eventually sell it later, and so price a drop could be expected. And that could explain why some traders are cautious; futures traders, for example, are not certain about what to do.
Beyond the charts, there are other signs of growing optimism for Ethereum. The timely launch of Ethereum 2.0 gives confidence in the work of the developers, and in the possibility of growth for the entire ecosystem. This milestone is comparable in influence to Bitcoin's halving—a once in four years event that keeps the currency’s inflation rate in check—in terms of market expectations.
Likewise, developments in decentralized finance, or DeFi—shorthand for an array of non-custodial, peer-to-peer financial services—and endorsements from US federal regulators regarding stablecoins, may continue to help make the case for Ethereum as a good alternative to Bitcoin from the point of view of institutional investments.
In terms of market sentiment, Ethereum is doing better than ever. Interest in the asset is at an all-time high, as evidenced by Google search trends.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.