Ether is super-hot these days, with BlackRock filing for ETF to bitcoin bull run, #eth is doing amazing. At the time of writing this post #ETH was trading over 3,897.88 .
Ethereum's chart suggests it is in the throes of a natural correction. After a sustained period of growth, marked by a series of higher highs, the price appears to be retracing toward key support levels.
These pullbacks are healthy in a bull market, allowing the asset to gather the necessary momentum for the next leg up. Technical indicators such as moving averages, which have provided support throughout the rally, are now being retested.
This cooling-off phase is characterized by a reduction in trading volume, indicating a decrease in immediate buying pressure. It also reflects the broader market sentiment, where the fear of a significant downturn prompts investors to lock in gains, resulting in a self-fulfilling prophecy of a temporary downtrend.
Bitcoin's path to $80,000
Bitcoin is approaching the psychological barrier of $80,000, but the current state of the market might not let it go through.
Bitcoin's recent trajectory shows a climb toward this unprecedented level, with the asset exhibiting strong support near the $62,000 range. This support level is bolstered by the 50-day moving average, which historically acts as a dynamic foundation during bullish trends. The ascent has been accompanied by increasing trading volume, suggesting that the rally has substantial market participation and is not solely driven by speculative action.
As BTC flirts with the $80,000 mark, resistance has formed near the $74,000 zone, where profit-taking has caused price retracements. The current price action indicates that Bitcoin is consolidating gains, often a prelude to a more decisive move. The resistance zone needs to be watched closely, as a breakout above it could signal the continuation of the bull run,
