Ethereum is currently trading at $381 following a 9.14% plunge over the past fortnight as volatility returns to the cryptocurrency market.
The industry’s second largest asset by market cap remains in a bullish position on higher time frames as long as it continues to trade above the $366 level of support.
It’s worth noting that Ethereum’s bullish run over the summer months coincided with an increase in popularity around DeFi projects like Yearn Finance and Uniswap, both of which operate on the Ethereum network.
The hype surrounding those projects has now subsided, with YFI falling back below the $10,000 mark despite trading as high as $40,000 earlier in the year.
However, if Ethereum can continue to establish support whilst Bitcoin attempts to form a new yearly high, it will be delicately poised to break out above $500 before the year is over.
A Bitcoin rise, and subsequent consolidation, bodes well for altcoins like Ethereum and tokens like YFI.
If Bitcoin can consolidate after making a higher high profits will flow back into more speculative bets, which could well lead towards another hype-fuelled bull run early next year.
For now Ethereum needs to break above the short-term level of resistance at $414 before it can begin to set its sights on upside targets like $484 and $500.
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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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