Ethereum is on the brink of breaking its all-time high of $1,827 after it formed another crucial higher low overnight.
The world’s second largest cryptocurrency was expected to suffer a sell-off this week following its listing on CME, however news of Tesla’s investment in Bitcoin gave the wider market a much needed lift.
At the time of writing Ethereum is trading at $1,769 as it begins to retest the previous all-time high that was set this time last week.
Much of Ethereum’s upcoming price action will depend on the trajectory of Bitcoin and whether capital rotates back into altcoins.
We have often seen that when Bitcoin rises, altcoins suffer against their respective BTC trading pairs, while when Bitcoin consolidates, that capital flows back into altcoins.
This has caused the likes of Cardano to rally by more than 100% over the past seven days in what has been a clear sign of strength in the altcoin market.
If Bitcoin does begin to rally to the $50,000 level from here, Ethereum will most likely come back down and test the level of support at $1,558, with another key support level being at $1,450.
However, if Bitcoin continues to consolidate between $45,000 and $50,000, Ethereum will set itself up for a rally to above $2,000 as optimism around the world’s second largest cryptocurrency surges to a new high.
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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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