Ethereum (ETH) Soars 10 Percent as Bitcoin (BTC) Hits 6-Month High, But Can it Break $6k?
Ethereum is up a huge 10 percent today having regained all of its losses over the past 30 days. The cryptocurrency is now trading at early April levels and looks set to hit a new yearly high if this rally continues.
On April 10th it reached a yearly high of $184, the highest it’s been since late November last year when the crypto market crashed by almost 50 percent. Against Bitcoin, Ethereum is up one percent and is nearing oversold territory, which means it could test the previous trendline which now acts as resistance. However, with Bitcoin now facing resistance at $6,000, movements will largely depend on how it fares.
In a recent podcast on Chain Reaction, Ethereum co-founder Joseph Lubin spoke of the ‘growing pains’ that Ethereum is facing but believes that lots of people are working to ‘improve virtually everything’ about it.
Since hitting a shocking low of $99 billion on December 15th last year, the overall cryptocurrency market has spent this year slowly climbing back up to current levels of $184 billion. It’s the highest level the market has been since November 13th last year.
Bitcoin has also hit a six month high today, touching very close to $6,000 on certain exchanges. While it has faced expected resistance at the level, indicators suggest that it’s still possible for more gains to be made. The $6,000 resistance level is particularly significant since that is where BTC was just before the huge crash last November. This means that a lot of investors have been waiting for this moment to sell at a break-even level.
However, support remains strong at $5,850 with the asset likely to find strong resistance above $6,000 at $6,280. For any indication of a definitive bullish trend, BTC must cross over the bull flag pattern and hold support above $5,900. BTC dominance is at a yearly high of 57 percent and its market cap is now well past $100 billion. This, coupled with strong sentiment amongst traders, may be enough to push through the $6,000 resistance level in the coming days.