Ethereum is currently trading narrowly below the $600 level of resistance following a volatile weekend that saw it fluctuate within an eight percent range.
The industry’s second largest asset by market cap remains in a bullish formation on higher time frames as it gears up for a strong finish to what has been a sensational year.
It’s worth noting, however, that while price action has been grinding to the upside, trade volume on Coinbase has fallen significantly since the turn of the month to suggest a short-term pull back may be on the cards.
There is also bearish divergence between price action and the relative strength index, with the RSI printing consistent lower highs while price action remains sideways.
This indicates that a market correction to the $565 level of support seems most likely in the short term, although a further plunge $487 and $445 may come into fruition if Bitcoin fails to break $20,000 with conviction.
Even though a 25% correction may seem to be a fairly dreary scenario, it would actually reinforce Ethereum’s bullish posture on the macro scale as it would reset key indicators and bring in a fresh wave of buyers at those levels.
During the bull market in 2017 it was not uncommon to see assets rise exponentially before experiencing corrections of up to 30%, in fact, the cryptocurrencies that didn’t survive were the ones that surged unsustainably before inevitably crashing back to zero.
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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