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Ether (ETH), Ethereum's cryptocurrency, is outpacing Bitcoin, surging at a remarkable pace. Currently priced at $2,376, ETH records a weekly gain of 13%, overshadowing Bitcoin's 14% increase in the last seven days.
The ETH/USD chart reflects a significant move, approaching the $2,400 level. This surge is driven by a market shift, deeming Bitcoin as "expensive" and favoring the "cheap" allure of Ether. This trend may repeat as capital transitions from BTC to ETH during this bull market cycle.
Fundamentally, ETH has strong growth drivers. Anticipation of spot ETH ETFs in 2024, following BTC ETF approvals, and Ethereum network upgrades, including the Proof-of-Stake switch, contribute to Ether's accelerated growth potential.
Examining market sentiment, both Bitcoin Fear and Greed Index (at 72 points) and Ethereum Fear and Greed Index (at 73 points) signal investor greed. Capital flows from BTC to ETH, indicating a potential correction. However, this correction won't impede further growth, representing a natural market response to recent surges.
The ETH/USDT pair recently achieved a new high at $2,389, triggering a slight pullback of -1.65%. Potential Bearish Divergence, seen in the price-momentum indicator on the H4 time frame chart, initiated this pullback.
While momentum remains robust, the RSI (14) slightly retreats from extremely overbought conditions, revealing short-term bearish dominance. Once the pullback concludes, the uptrend is expected to resume, targeting $2,445. Key short-term technical support lies at $2,234, with a sustained breakout below signaling a more bearish outlook. The crucial short-term technical support remains at $2,134.
Pivot Points, instrumental in technical analysis, guide potential trend reversals and identify support and resistance levels.
The Ethereum market, surging since the $1,520 low, finds crucial technical support at $1,368. Sustaining trades above this level maintains a bullish overall outlook. Key mid-term technical support is identified at $1,913.
The begginers in forex trading need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp market fluctuations due to increased volatility. If you decide to trade during the news release, then always place stop orders to minimize losses.
Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes. For successful trading, you need to have a clear trading plan and stay focues and disciplined. Spontaneous trading decision based on the current market situation is an inherently losing strategy for a scalper or daytrader.
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*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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