While traditional financial markets experience a lull due to Thanksgiving in the U.S., the bullish momentum in the cryptocurrency market continues to keep traders engaged.
As seen on the ETH/USD chart:
→ Ethereum’s price has broken through the critical $3500 level, which acted as resistance during the summer (indicated by an arrow).
→ Additionally, the strength of demand is underscored by the fact that the price has surpassed the upper boundary of an ascending channel (marked in blue) that began in August.
Interestingly:
→ On October 25, we reported that the ETH/USD rate had fallen to a 44-month low.
→ Today, Bitcoin’s performance appears weaker relative to Ethereum.
What does this indicate?
On one hand, investors might be shifting their focus from Bitcoin, which has stalled near the psychological $100,000 mark, to Ethereum, which may appear undervalued compared to the leading cryptocurrency.
On the other hand, the current upward momentum breaking above $3600 could turn into a bull trap.
Failure of the ETH/USD rate to consolidate at its recent highs could make the second scenario more likely.
FXOpen offers the world’s most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.
*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under AFSL 412871 – ABN 61 143 678 719 respectively. They are not available for trading by Retail clients.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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