After rallying 8.15% to $387, Ethereum price is fast approaching a key resistance at $400.
On Oct. 12 the price of Ether (ETH)
soared 8.15% to reach a new monthly high at $387.75 on Binance. The
rally from $366 to as high as $387.50 occurred as Bitcoin (BTC) price surged to $11,600, leading traders to speculate that the crypto bull market has restarted.
Over
the past few weeks Ether’s fundamentals have strengthened and despite a
sharp downturn in the price of decentralized finance tokens, the number
of active users in the Ethereum network has continued to grow.
Ether follows Bitcoin in a strong intraday rally
When
Bitcoin price rallies Ether is usually the first beneficiary and this
was the case again as BTC price rallied to a key multi-year resistance
at $11,500.
During bull cycles or even short-term uptrends,
Bitcoin follows Ether and vice versa. Both cryptocurrencies tend to move
in tandem, with either one frontrunning the other.
Throughout
the past two weeks, traders focused on the favorable technical
structure of Bitcoin. Crypto trader Cantering Clark said the “context”
of the market momentum is also important.
High time frame charts,
including the weekly and monthly charts, depict a bullish outlook for
Bitcoin. Adding to this, other events like Square and MicroStrategy
investing nearly $500 million in Bitcoin could further amplify the
positive sentiment. Clark explained:
“Context
not only includes market structure, it includes any type of underlying
growth driver that may be at play. Hard to be bearish on BTC. You could
essentially create a wheel with bullish tweets, spin it at random, and
be right almost immediately in this market.”
source link : https://cointelegraph.com/news/ethereum-price-back-on-track-to-500-once-bulls-flip-400-to-support
