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Breaking News: LINK Price Climbs Following Chainlink's Deal With US Commerce Department, Eyes $30

Why Ethereum’s Unstoppable Rally Could Cool Off at $3K

Reynaldo Marquez
Reynaldo Marquez
4 years ago
2 mins read
Ethereum ETH ETHUSD

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Ethereum has seen a 34.5% rally during the week. At the time of writing, ETH trades at $2.976 with a 1.8% profit in the daily chart. The cryptocurrency has been reaching a new high in the lower timeframes and seems poised to break a major milestone at $3.000.

Ethereum ETH ETHUSD
ETH with sideways movement in the daily chart. Source: ETHUSD Tradingview

However, several experts seem cautious due to major walls of resistance at those levels. Pseudonym trader “Edward Morra” has followed ETH’s price rally closely for the past days. The trader is “fascinated” by ETH price action which has shown shallow pullbacks with constant grind-ups. On this price structure, Morra said:

These type of patterns either end up exploding up or spill down cascading the stops, both extremes.

The trader also pointed to the ETH price chart for the past 3 months when the cryptocurrency broke $1.000 and 2.000. Almost immediately after, the price experienced severe corrections, as showed in the chart below. Next week could be critical to determined Ethereum’s price trajectory in the short term.

Ethereum ETH ETHUSD
Source: Trader “Edward Morra”

Additional data shared by Morra and trader Byzantine General show a large amount of selling orders for ETH at $3.000 on all exchanges. The orders go from $9 million to $30 million. Therefore, they concluded that this price target will be a “challenge”. However, Byzantine General stated the following:

I saw walls like this at $1000 ETH too and they got eaten for the most part.

Ethereum ETH ETHUSD
Source: Byzantine General

Ethereum Based Products Received $30 Million In Inflows

In support of Ethereum’s bullish case, Chief Strategy Officer of CoinShares, Meltem Demiros, shared data on the digital asset fund flows for last week. Demiros’ firm has determined that ETH’s bullish sentiment is on the rise as the cryptocurrency saw $34 million inflows for its investment product last week.

ETH has “bucked” a trend of outflows that most noticeable affected Bitcoin. In contrast, the first cryptocurrency by market cap saw a $21 million outflows in its investment product for the same period. The trend started after BTC’s mining sector was affected by a series of power outages in the Chinese province of Xinjiang. Demiros added the following:

(…) last week saw $21M in BTC product outflows, the largest outflow on record that same period saw $34M of inflows into ETH products. This data indicates investor sentiment around ETH is positive.

Ethereum ETH ETHUSD
Source: CoinShares Digital Asset Fund Flow Weekly

Institutions seem to be warming up to Ethereum at a high speed. In that period, the European Investment Bank announced a digital bong based on ETH. Senior Editor at the Economic and Financial desk for the German “Die Welt”, Holger Zschaepitz, believes this to be amongst the reasons for ETH’s rally.

#Ether hit fresh ATH as 2nd largest cryptocurrency offers a new narrative. European Investment Bank recently announced its first-ever digital bond on the #ethereum blockchain, which is the main reason behind this rally. Clearly shows that digital assets are mainstream now. pic.twitter.com/AZszDUW4iF

— Holger Zschaepitz (@Schuldensuehner) May 1, 2021

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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