Crypto Update: Ethereum Rips Through $500, IOTA Hits $1.50, as Buyers Take Charge
It’s been an exciting 24 hours for crypto investors as the slow and bearish price action of the recent period quickly turned into a buying frenzy across the board. The total value of the market is up by more than 30% from the lows, hitting $325 billion today in early trading, with several coins advancing to three-week highs in the process.
While sharp pullbacks are almost granted given the lofty gains, the previous sharp losses and the depressed investor sentiment could fuel a durable rally in the coming weeks and months. Traders should expect a crucial battle between bulls and bears near the trendlines that drove the plunge from a technical perspective.
BTC/USD, 4-Hour Chart Analysis
Bitcoin is trading above the $8000 level, approaching the next main resistance zone, near $8400 where the dominant broad declining trendline is also found currently. While a test of that zone is likely, it could trigger a consolidation or a short-term correction even if the bullish momentum persists. With the long-term picture still being favorable, the trendline might finally fall, with further target zones ahead above that between $9000-$9200 and $10,000.
Altcoins continue to outperform BTC, as it has been the case for the last five days, and that trend has been the main force behind the short-term trend change, so traders should continue to monitor it in the coming weeks.
ETH/USD, 4-Hour Chart Analysis
Ethereum ran into resistance near the mid-point of the late-March trading range at $530 after rallying past the $500 level, being up by more than 40% in a week. While the current could be ready for a pullback, we expect a test of the next main resistance zone surrounding the $575 level in the coming week, with the dominant trendline being found just above $600 and primary resistance below at $450.
IOTA and Ripple Join the Leaders
IOT/USD, 4-Hour Chart Analysis
IOTA and Ripple are among the biggest movers, with the former exploding to $1.50 in early trading, leaving behind the broad declining trendline that it broke one day ago. NEO and EOS, which were among the leaders besides ETH are slightly weaker today, but their performance is in line with a healthy round of rotation, and for now, it doesn’t point to a failed move.
The laggards of the surge are also gaining some ground, with now all of the majors rallying past crucial resistance level, as ETC topped $16, Monero recaptured $200 and Litecoin rose above $125. That said, the short-term weak coins should hold up well during the next pullback to confirm the broad rally.
Stay tuned for our long-term technical analysis later on today.
Featured image from Shutterstock
Disclaimer: The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.