With much of the attention focused on Bitcoin’s charge towards $10,500, it was Ethereum which stole the headlines this morning following an outrageous 15% rally to above the $250 level of resistance.
The world’s second-largest cryptocurrency surged to $258 on numerous exchanges before a minor pullback took it back to test the $250 level of support.
If this evening’s daily candle can close above $250 it would confirm a continuation of the past week’s breakout with an initial upside target emerging at $269.
Ethereum is now 109% up since its December low of $120 as cryptocurrency bulls attempt to price in the upcoming Bitcoin halving.
Block rewards for Bitcoin miners will be slashed from 12.5BTC to 6.25BTC per block in May – an event that has historically proved bullish for the entire cryptocurrency ecosystem.
If the halving theory is to be validated, Bitcoin will likely continue to rally up until May with some analysts claiming that it could even eclipse its previous all-time high of $20,000.
If a major move for Bitcoin comes into fruition profits typically flow into more volatile assets like Ethereum, Litecoin and Bitcoin Cash as traders begin to diversify their portfolio.
Ethereum’s daily relative strength index (RSI) is now at its highest point since May 2019, which was when it rose from $170 to $269 three weeks before it began to rally towards its yearly high of $364.
It is also trading above all major moving averages with the 50 EMA crossing the 200 EMA to the upside, which will inevitably add fuel to the potential rally towards $269.
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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