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.
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.
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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As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.
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