Ethereum is currently reeling from a fresh sell-off following a third consecutive failure to achieve a high above $1,450.
The world’s second largest cryptocurrency is trading at $1,280 at the time of writing after bouncing off the $1,250 level of support.
It remains relatively bullish against its Bitcoin trading pair, having rallied by 73% since the January 3 low of 0.023 BTC.
However, against the Dollar it needs to continue its recent uptrend to avoid forming a lower high. Thus far it has printed three consecutive higher highs and higher lows, indicating the strength of the recent move.
Much of its upcoming trajectory will depend on the direction of Bitcoin. If BTC begins to slump back below the $30,000 level of support it would cause a cascading effect on altcoins including Ethereum.
If a Bitcoin drop comes into fruition, Ethereum could begin to test the $1,221 and $1,117 levels of support as the market begins to correct.
From a technical perspective, Ethereum remains bullish on all higher time frames despite the slump this week. Upside targets remain above the all-time high of $1,450 at $1,600 and $2,000, although this would depend on Bitcoin moving back up towards $40,000.
It’s worth noting that Ethereum futures will be listed on CME on February 10. While many consider this to be a bullish event, Bitcoin’s CME listing coincided with the top of the 2017 bull market.
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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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