Ethereum exploded higher a few hours ago despite a strong Bitcoin correction. Bitcoin price fell to just $ 17,500 this morning on major exchanges as the institutional buying that kept the price afloat during the week slackened over the weekend.
BTC has since rebounded since hitting those lows. Ethereum has also risen: the coin is up around 10% from its daily lows, rising from the lows of $ 515 to $ 570 at the time of this writing.
With Ethereum hitting new highs since the start of the year as Bitcoin stagnates and tries to consolidate, this seems to suggest that capital is moving from BTC to altcoins.
This is evident from strong rallies in the altcoin market, including gains on leading DeFi coins and older cryptocurrencies versus the previous bull market.
Related Reading: Here’s Why Ethereum’s DeFi Market May Be At The Bottom
Ethereum is facing strong selling pressure
While analysts are confident that Ethereum will continue to explode, one analyst recently noted that order book data shows the coin is facing significant selling pressure.
The graph shows that Ethereum has clear selling walls in the $ 600 region, which many analysts are watching next.
“There is serious market buying going on, but the ask page is stacked. I don’t expect us to break 600 today, ”the analyst said referring to the data below.
Ethereum has not traded in the $ 600 range since mid-2018. If the ETH hits $ 600 it would be about a 350% increase over the previous year.
Data of ETH's order books from crypto trader Byzantine General (Byzgen on Twitter).
Related reading: Tyler Winklevoss: A “tsunami” of capital is coming for Bitcoin
ETH2 inches closer
This rally comes because ETH2 has also come closer.
Ethereum founder Vitalik Buterin recently commented on ETH2’s token economy:
“In two years’ time the main task will be to stabilize and appreciate what we have built. Until then, participating in Ethereum is, in part, inevitably a prediction that the roadmap is good and that once this upgrade process is complete, we will actually get to a place where the network is efficient, stable, powerful and the basis of significant data can be parts of the world economy. “
Analysts assume that Ethereum will recover over the long term, as the ETH stakers can generate a regular return that is paid to ETH.
Related Topics: 3 Bitcoin On Chain Trends Show A Macro Bull Market Is Brewing
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