Following the lead of the stock market, Bitcoin, Ethereum, and the rest of the cryptocurrency market have been strongly rallying higher over the past few hours. In fact, ETH’s short-term chart has gone vertical, with the asset recently surmounting $150 for the first time since the relief recovery on March 19th.
While the bullish action has slightly subsided, the cryptocurrency is up 20% in the past two days, having reached $122 during the weekend drawdown.
As the majority of this move higher just transpired, analysts are still trying to pick up the pieces of what transpired and what comes next for Ethereum and the rest of the digital asset market.
Ethereum Could Continue to Surge Higher, Factors Suggest
According to a number of analysts, there remains a strong case for further upside in the crypto market.
Prior to the surge to $150, trader Crypto Cactus remarked that ETH was then retesting a “strong resistance level,” the upper bound of the last two weeks’ trading range. The recent surge above the aforementioned resistance level is likely to confirm a support-resistance flip, which will give the cryptocurrency fuel to continue higher.
$ETH LTF Update
This is it, a major retest of this strong resistance level that hopefully once flipped can shift out bias more bullish. Previously tried to break above this level multiple times since ranging in this region so would be a major S/R flip.
1H looking positive! pic.twitter.com/VaOJa6SLJA
— Cactus (@TheCryptoCactus) April 2, 2020
The outlook for Bitcoin is similarly bullish, which bodes well for Ethereum’s trajectory.
Qiao Wang of Messari noted that while he is cautious due to macro conditions in the broader economy, Coinbase Pro’s Bitcoin order book is currently stacked on the buy-side, suggesting strong buying demand for BTC.
In fact, as can be seen below, there is approximately 23,000 BTC worth of orders down to $2,000 while there is only 4,000 BTC worth of orders up to $12,000 — a trend that Wang says he “can’t get any more long-term bullish on.”
BTC order book… While I'm short-term cautious due to macro conditions, it can't get any more long-term bullish than this: pic.twitter.com/snq8ISFMCF
— Qiao Wang (@QWQiao) April 2, 2020
The strong demand for cryptocurrency can be corroborated by the absolute explosion in the quantity of U.S. dollar stablecoins. Per previous reports from NewsBTC, the value of all U.S. dollar stablecoins (USDT, Binance USD, USD Coin, etc.) is on the verge of passing $8 billion — a metric up by 20% in the past month in itself.
As to why this is bullish, Charles Edwards, a digital asset manager, noted earlier this year that “major changes in Tether’s market capitalization have led Bitcoin’s price over the last 1.5 years.”
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