While Bitcoin continues about $ 8,000 below its historical maximum, Ethereum managed to mark a maximum starting this month of May, thus managing to stand out in the crypto market as one of the best profits has generated in recent days.
At the time of this writing, ETH is trading at $ 2,921, accumulating a gain of 2.40% in the last 24 hours and 24.90% in the last 7 days.
Investment bank JP Morgan recently explained why the second largest cryptocurrency is showing better performance than Bitcoin. They claim that this behavior is due to the increase in liquidity and volume of transactions, which triggered an event of comparable slowdown in their respective derivatives markets.
It seems that we will see Ethereum lead the bullish baton for a while longer in the short term, and to know more precisely how it could behave, here is a technical analysis of this cryptocurrency.
Ethereum makes a big push, is it about to run out?
Ethereum is developing quite a large medium-term trend momentum.
It is possible that this bullish jump is about to run out, however, it is never a very good idea to sit and wait for falls before a momentum as strong as the one we are seeing.
The trend is undoubtedly in the hands of the bulls. A drop in the near future will be the product of a healthy profit taking, and search for demand from those who take advantage of discounted prices, so we would quickly see buyers regain control.
Ethereum Forecast, May 2021
When analyzing the daily chart we realize that the momentum seems to be complete, after reaching the -61.8% Fibonacci level.
Today a bearish candle is in development, if it closes like this, it could be signaling the beginning of a small correction before continuing to rise.
There is still a chance that Ethereum price will seek to hit a higher all-time high starting in May, before wanting to pull back.
As I mentioned, a fall at this point would be healthy, but it will be nothing more than a correction. Then we would quickly see the buying pressure pushing the price higher again.
An ETH around $ 3,500 this May doesn’t seem like a very far-fetched idea.
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