Ethereum is making a serious move to re-test the $4,000 level of resistance following a sensational 35.96% push to the upside since the start of the month.
The world’s second-largest cryptocurrency has regained a bullish posture on all timeframes after breaking out of September’s downtrend, which saw it slump from $4,000 to as low as $2,500.
If Ethereum can break the psychological level at $4,000 before the month is over, it will likely drive towards a new all-time high above $4,400 before the end of the year.
Daily trade volume has increased by 20.34% to $19 billion as speculators rush to altcoins following a period of Bitcoin dominance over the past fortnight.
Ethereum’s future price action will also depend on the direction of Bitcoin. If the industry’s largest asset can surge above $60,000 with eyes on a new record high, capital will likely rotate back into projects like Ethereum, Cardano, and Solana as the market heats up.
However, if Bitcoin is dealt a bitter rejection from the $58,500 level as it did on February 21, the likes of Ethereum will slip back into a period of consolidation as the market ponders whether cryptocurrency is still in a bull market, or if it’s in a gruelling bull trap.
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Buterin had proposed that Bitcoin needed a scripting language. He decided to develop a new platform with a more general scripting language when he couldn’t get buy-in to his proposal.
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