Many high cap cryptoassets have lately seen dramatic increases in valuation, in the wake of Bitcoin’s (BTC) shocking breakout from $4,200 a week ago (which it continues to defend as of today, 9 April). Litecoin (LTC), Bitcoin Cash (BCH), and Ethereum Classic (ETC) have all had their own breakout events.
Meanwhile, Ethereum (ETH), has definitely seen some impressive uptrending gains since the overall February uptrend began, and again after the April 2 breakout.
But, the sentiment in the air – and on the charts – seems to be that Ethereum deserves its own shocking price rise, more like a doubling than a steady grind up.
UPDATE: Have been quite patient with this one, I think it will pay off very soon. Let the journey begin 🙂 pic.twitter.com/t7MVwzvBJF
— Credible Crypto (@CredibleCrypto) April 8, 2019
The Bitfinex exchange presents us with some evidence for this sentiment, as ETH long contracts on the exchange have climbed to about 560,000 contracts at time of writing – which is seven times higher than the number of short contracts held on the site.
But in fact, the end of bearish sentiment for ETH seems to have really got going in early February at the start of a steady uptrend in the markets.
Not quite obversely, bullish sentiment for ETH, at least on Bitfinex, has been rising for some time. The same early February period is circled below in blue.
It would be unreasonable to say that this sentiment is unfounded. Ethereum, after a 25% breakout between 2-3 April, has been stair-stepping its way higher throughout the past week, and holding on to most of its gains with each step.
The current price action seems snagged between support/resistance zones at $183 and $175.
A look at the weekly chart helps us understand the high expectations of a break up. The region between $160-165 was extremely important, having multiple contact points (blue circles) come from both above and below. But it has now been solidly broken. A strong – or perhaps stronger – run up into the 200’s could have been expected. Perhaps a retest down toward $165 will help build the confidence for a stronger run.