The correction on the cryptocurrency market is coming to an end, and prices are again rushing up. The Ethereum cryptocurrency rose to a 7-month high. During the day, the cryptocurrency market significantly increased the volume of capitalization - it increased by $ 20 billion. The capitalization reached $ 300 billion, which is the highest since the summer of 2019.
Bitcoin has recently shown good growth, reaching $ 10,450, but Ethereum has surpassed it. This altcoin showed a sharp rise, gaining more than 15% in a short time and reaching the level of 260 dollars.
The last time ETH reached these levels in the summer of 2019, after which the downtrend led to a collapse in value to $ 120 by mid-December. Since then, Ethereum has doubled in price. Experts expect the next level of resistance at 270 dollars. Having broken it, the bulls will be able to go to the values of 300 dollars.
Investors started talking about the intersection of two moving averages. This usually applies to the 50- and 200-day moving average. A week earlier, a similar intersection formed on the Ethereum exchange rate chart, which aroused great interest among analysts. Subsequently, this cross was confirmed by the development of a bull trend in the market.
Now it is not visible that the market will again go into a downtrend, but if this happens, ETH may roll back to the support level of 190 dollars. A well-known trader and analyst with the nickname Galaxy recently posted a comment, drawing users' attention to the MACD indicator. On the monthly chart, for the first time in more than two years, he moved from a bearish trend to a bullish one, maintaining positive dynamics in February.
When something similar happened last time, the broadcast went into the rally by almost 400% - from 300 to 1,440 dollars. If such growth repeats itself, the currency will almost certainly exceed the $ 1,000 level.
On the side of Ethereum are now fundamental principles. Recently, information appeared, JP Morgan Chase's blockchain division called Quorum is discussing the possibility of a merger with ConsenSys. The latter specializes in creating software based on the ETH blockchain. If the merger happens, JP Morgan will provide a powerful flow of capital to the Ethereum network.
Another trump card of Vitalik Buterin's blockchain project is decentralized finance. By this advantage, the network surpasses many of its competitors in the market. According to many forecasts, by the end of 2020, the ethereum rate should rise to $ 800.