Ethereum seems to have finally broken out against its Bitcoin trading pair with bullish continuation seeming likely over the coming weeks.
The world’s second largest cryptocurrency surged by almost 5% against Bitcoin in yesterday’s trading session, with it also retesting the psychological level of resistance at $250.
Breaking above $250 would be a notable demonstration of strength in both the short and long term as it was a point of rejection before the sell-off in March as well as throughout June.
But it is against Bitcoin where Ethereum asserts most bullish bias as it is now trading above the symmetrical triangle that has been forming since February’s high of 0.029BTC.
A measured move for the breakout would take Ethereum to at least 0.0308BTC, which would be the highest point its traded at in more than 12 months.
If Bitcoin can remain in its relatively stable range between $9,000 and $10,000 Ethereum will likely move back towards the crucial level of $300, which has been an important level of support and resistance dating back to 2017.
However, it’s worth noting that while Ethereum presents one of the most bullish charts at present, the potential impact of a covid-19 second wave could have a dramatic impact on the cryptocurrency market.
The economic impact of covid-19 caused one of the most severe sell-offs in the history of digital assets in March, so while there is certainly a case to be bullish, traders should proceed with caution as volatility is expected to return in the coming weeks.
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Ethereum was launched by Vitalik Buterin on July 30 2015. He was a researcher and programmer working on Bitcoin Magazine and he initially wrote a whitepaper in 2013 describing Ethereum.
Buterin had proposed that Bitcoin needed a scripting language. He decided to develop a new platform with a more general scripting language when he couldn’t get buy-in to his proposal.
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