ETH is up over 10% the past 24 hours. ETH is currently pushing $240, the highest price since early March.
ETH 4 hour chart | Source: Tradingview, Coinbase
Decision time for ETH
For some context, Bitcoin is up a mere 3% in the past 24 hours. Also, a majority of altcoins have registered gains of around 5-6%.
This surge is important as it comes at a critical time for cryptocurrency bulls. FatihSK (@FatihSK87), a popular trader on Twitter shared the ETH/BTC chart seen below a few days ago, writing that it’s “decision time” for ETH
The chart indicates that ETH is soon about to see a massive breakout past a crucial downtrend that has held for nearly three years and past a key relative strength index level. In rallying today by 10%, outpacing BTC, ETH may be set to rally even higher in the coming weeks.
Analysts Are Betting on More ETH Upside
Another popular trader tweeted the chart below with the comment “not exactly bearish.” It shows that while ETH is not yet past a key zone of historical resistance, it has reclaimed a key trendline that supported the rally from the March lows.
There are reasons to be bullish on ETH
Blockchain analytics firm Santiment recently found that there has been a rapid increase in accumulation by some of ETH’s “whale” addresses over the past few weeks.
1/ $ETH whale addresses have just hit a 10-month high with the cumulative holdings of the top 100 non-exchange wallets now owning over 21,800,000 #Ethereum (About $4.5 billion at current price).
This is the largest collective balance held within the top pic.twitter.com/AJgfgsYFE5
— Santiment (@santimentfeed) May 28, 2020
Mythos Capital founder Ryan Sean Adams recently remarked that ETH is “doubly” undervalued.
Adams largely attributed his bullish sentiment to the image below, which shows that the price of ETH has been closely correlated with the transaction fees Ethereum users pay to get their transactions processed over the past four or five years.
ETH Price Vs Ethereum Blockspace Fees
Ethereum transaction fees have spiked over recent weeks alongside Bitcoin fees, suggesting that ETH has room to rally to the upside.
Alongside the increasing usage of Ethereum, analysts have seen the fundamental case for decentralized finance increase massively over the past few weeks as central banks have grown increasingly “dovish” with policy due to COVID-19.
This is a trend that Ethereum will benefit from due to it being the de-facto go-to blockchain for DeFi applications.
Read more:
- Bitcoin Fees Reduced By 60% Along With The Number Of Transactions
- The Fractal Predicts Bitcoin Will Soon Surge Back Towards The $20,000 Highs, The Chart Much Like The Stock Of Amazon Did From The Dotcom Boom