Ethereum Price New Historical High And Probable Correction To $3000

A good mood, confidence, and belief in the best depend on many factors in life. However, over the last few weeks, we have realized that the presence of ETH in the crypto portfolio is one such factor. Over the past 6 weeks, the Ethereum price has risen at a record high alongside the DeFi sector, despite the dubious mood of Bitcoin.

The current and last trading weeks were especially successful, during which the ETH price increased by 45%. Heavy, expensive, voluminous Ethereum is trying to stay on top in the crypto world, pulling the entire crypto market on itself now. However, how long will the ETH investors’ capacity be enough to continue the bright correctional growth?

If we look at the daily timeframe, we see that buyers have managed to touch the upward trend line of the global growth channel:

Ethereum
Source: Trading view

ETH Price Passed $3000, Will Buyers Keep it Tight?

In this channel, the ETH price starts from 11 January 2021. This channel is part of the global growth momentum from March 2020, which has not yet been corrected. As we see in the chart, high volumes are noticeable when meeting the price with the orange trend line. It indicates that sellers are ready to defend themselves.

Therefore, if buyers do not fix above the trend line by the end of the week, we will expect a correction in the range of $3000. In the previous article, we wrote about this mark and waited for its test. Though, buyers managed to exceed our target.

Proof that a large number of BTC investors invest their Bitcoins in Ethereum is the chart of the ETHBTC pair:

Ethereum Price Successfully Took Advantage of BTC’s Weakness

While Bitcoin has been unstable for the last 2 months, investors have decided to wait out its bad mood in ETH.

Ambitious buyers are aiming for the Ethereum historical high test. However, this path is not easy, and the first problem in the path of uncorrected ETHBTC growth is the range of 0.071-0.073.

If we pay attention to the BTC dominance, which now stands at about 47%, we see on the chart that the last such figure was in 2018. Instead, the ETH dominance is steadily growing and moving to 19-20%:

The last such impact of ETH on the crypto market was also in 2018. Given the above, the prospect of continued Ethereum price growth remains high. However, at the moment, a local correction to $3000 would not hurt.

The critical point of the current growth momentum is the mark of $2700. Below this mark, the strength of buyers is in the range of $2100-2200.

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