Ethereum is showing serious signs of strength this week with it currently trading back above the $2,800 mark.
The world’s second-largest cryptocurrency by market cap has now risen by 29.03% over the past eight days as optimistic traders attempt to swoop on a local low.
It is beginning to overtake Bitcoin in terms of the strength of recovery, with BTC continuing to struggle around the $38,600 level.
It’s worth noting that $2,900 is a major level of resistance for Ethereum. It is the same point that caused four consecutive rejections in May before eventually tumbling down to $1,750.
If it can begin to close daily candles above $2,900 it could pave the way towards a surge to the $3,200 region.
However, much of this hinges on the direction of Bitcoin and the wider market.
If Bitcoin breaks above $40,000 with conviction on notable volume, the momentum will transfer to the remainder of the field – including Ethereum.
If it faces a gruelling rejection from $39,000 and heads back to the $35,500 range, Ethereum will suffer with an expected move back down to at least $2,600 if not $2,330.
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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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