As the financial world focuses on the capitulation of the price of oil cryptocurrency speculators are weighing up the potential of a possible Ethereum breakout.
The world’s second largest cryptocurrency, which has a market cap of $19 billion, is currently trading at $170.78 after surging by more than 13% in the past week.
It momentarily broke above the crucial daily 200 moving average on April 18 before falling back below two days later.
It is now battling it out over over the 200MA ahead of this evening’s daily candle close, with a breakout being confirmed if it closes back above $181.25.
However, it’s worth noting that a rejection from the 200MA could lead towards a transition into a bearish phase in the market, with targets emerging at $151.89 and $133.59.
It’s been a typically volatile year for Ethereum and the entire cryptocurrency asset class. ETH is 33.57% up against its USD trading pair since the turn of the year despite being 41.96% down from its February high of $290.
Forecasts for the remainder of the year remain uncertain due to the amount of factors affecting price action, particularly the impact of Coronavirus and the Bitcoin halving.
Reports from the UK claim that the peak of coronavirus’ first wave is effectively over, which could cause a market recovery as people begin to go back to work.
The Bitcoin halving is also thought to have a bullish impact on price action as it will cause a reduction in supply, a stark contrast to what is happening with oil where a lack of demand has driven supply to unsustainable levels.
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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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