Ether's record breaking run set for a pause, three charts suggest
- Ether has grown more than six times in the current year
- Ether’s most recent rally is similar to its June-September surge
- Cryptocurrencies have offered very high returns in 2021
Technical indicators suggest that the rally in Ethereum, the second-largest cryptocurrency, is set for a pause after a record-breaking run.
Ethereum blockchain’s native token has grown more than six times in the current year, passing Bitcoin’s 127% rise amid speculative demand for digital assets. Ether’s demand is boosted by upgrades to the Ethereum network and its popular decentralized services and digital collectibles.
According to Vijay Ayyar, head, Asia Pacific, of Luno crypto exchange in Singapore, Ether has consolidated in the past few days and the long-term view is bullish. Ether and the altcoin market would move faster than Bitcoin, he added. Altcoins are key tokens other than Bitcoin.
Fibonacci ratios, which are used to help identify market reversal, also signal caution.
According to analysis, Ether’s most recent rally is similar to its June-September surge that subsequently subsided. Some analysts view this symmetrical pattern as signalling a similar pullback now.
DeMark, a widely used indicator to predict when a market trend has run its course, is also flashing red signals.
The TD sequential study uses a method of counting applied to chart patterns. According to analysis, Ether has printed the maximum 13 count that likely indicates a retract. The $4,998 level is a key level to watch for - overcoming that mark hints at unexpected Ether strength and the study would reset.
Cryptocurrencies have offered very high returns in 2021. For example, the Bloomberg Galaxy Crypto Index is up about 262% during the year. But its volatility is always a matter of discussion and regulators are looking at ways to regulate it.
Ether (ETH) is the crypto currency of the Ethereum blockchain network. It is the second largest and most popular cryptocurrency after Bitcoin (BTC). Ethereum’s live blockchain was released on July 30, 2015. It is expected to outpace Bitcoin in the future.