The market had apparently kicked off its upward correction, with Ethereum up by 21 percent from the $98 bottom to $118 as of press time. Bitcoin price ran up by 15 percent from the $3600 support.
The corrected has been expected after the massive declines since BTC broke down the descending triangle formation in the daily chart, nearly two weeks ago.
Since the beginning of such a bearish event, every correction has been pretty flat. At present, analysts believe that the bulls are pushing for better momentum, although they agree that it’s still too early to determine whether the recovery is a start of a change in the trend’s direction or just a temporary correction before it head-dives even deeper towards the $3000 price.
As of press time, Ethereum is trading around the $120 price level and is attempting to break above the $120 to $124 support-turned resistance level.
Analysts believe that if the bulls keep up their excellent work and Ethereum breaks higher than the $120 to $124 resistance level, then the 55EMA might be the next milestone. On the flip side, if the resistance level holds and the bearish participants try to take control of the market, ETH will probably get down to retest the $100 area.
Meanwhile, in the bigger cryptocurrency market, after the large-scale disruption in the crypto space, many have begun to question whether the asset class could sink or swim.
Bakkt CEO Kelly Loeffler said that he was confident that the platform’s futures contracts will help establish a trusted bitcoin price for investors. Despite the huge recent slumps in the bitcoin price, NASDAQ says it would launch bitcoin futures platform by the first quarter of next year.
Also, many participants also think that the launch of bitcoin ETFs can increase the demand for cryptocurrencies.