Ethereum has continued its barnstorming rally of late, surging to a mightily impressive all-time high of $4,642 before consolidating at $4,500.
The world’s second largest cryptocurrency by market cap has remained in a sturdy uptrend since September 22, when it dropped to a low of $2,650 – making a 71% rise in less than six weeks.
Momentum appears to have finally shifted from Bitcoin to larger altcoins like Ethereum, Polkadot and Solana in what many are dubbing as a new ‘alt season’.
While the altcoin market firmly has the bit between its teeth, it’s worth noting that if Bitcoin is to fall from its perch above $60,000, the entire market could crumble due to increasing amounts of leveraged long positions.
Open interest for Bitcoin is currently at $20 billion. Open interest has been this high on two occasions over the past few months, and on both occasions it preceded a dramatic slump to the downside as over-leveraged long positions got squeezed.
From a technical perspective, it’s very difficult to find a bearish case for Ethereum when it has just broken its former record high on convincing volume. It is now expected to re-test the previous high before continuing its move to the upside, with potential targets emerging well above $5,000.
If the market decides to take a surprising turn, there are multiple levels of support for Ethereum in the $4,000 region as well as at $3,650 and $3,385.
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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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