The second most important cryptocurrency on the market recently marked a new all-time high. Short-term trends seem to indicate that it will reach new all-time highs shortly.
Ether recently reached a new all-time high of USD 1,471, entering unexplored territory. The cryptocurrency exceeded its previous all-time high of USD 1,439 from the previous week.
At the time of writing this article, Ether is trading at around USD 1,406. As “strong hands” continue to hoard the supply, the cryptocurrency has gained 7.16% in 24 hours.
A few hours earlier, the price of the second largest cryptocurrency set a new record. At the same time, the number of wallets with more than 10,000 Ether coins increased.
Ether’s trading volume is putting pressure on its price, indicating that the bullish rally will continue.
Many owners of wallets with more than 10,000 ETH have their eyes on the long term. For that reason, they do not consider that this increase is a reason to leave with a profit immediately.
Short-Term Trend Suggests a New All-Time High for Ether
A daily candlestick chart for Ether shows a clear short-term bullish direction. Momentum for this trend is currently under development and may even last several more days.
The cryptocurrency on the Ethereum network has been unable to leave the immediate resistance zone in the short term. If there is a pullback before the effective break of the ceiling, the gains will be useless. However, this is not the most likely thing to happen at the moment.
Ether’s Supply Shortage on Exchanges
It is possible to quickly confirm the strong bullish sentiment about Ether’s price through an indicator. This factor allows knowing the number of ETH coins that there are on exchanges.
A low ETH balance on exchanges indicates that investors are not looking to dispose of their coins in the short term.
Even though the price of Ether reached a new all-time high, this indicator plummeted. This means that, regardless of how tempting it is to sell at current profits, investors know that Ether still has a way to go.
Ether Still Has a Way to Go
This huge rise in the price of Ether is just the beginning of long-term momentum, which could last much longer. There may be a straight move toward the moon, but any pullback will encourage new purchases.
Ether had been pulling back for three weeks, but now it seems that bulls have already picked up enough demand. In 2021, ETH will continue to grow in the fundamental area of development with the launch of version 2.0 of the Ethereum network.
The second cryptocurrency on the market still has a way to go in terms of improvements. As investors know this, they have already been discounting the increase that the updates bring.
Various factors will exert upward pressure for Ethereum to reach consecutive all-time highs over the next months. These elements include the growth of the DeFi space, ETH stacking, a more scalable and comfortable network, and an entirely positive ecosystem.
By Alexander Salazar