According to Vijay Ayyar, CEO of Asia Pacific at crypto exchange Luno in Singapore, Ether has consolidated in recent days and the longer term outlook is favourable.
After a record-breaking run, technical signs imply Ether, the second-largest cryptocurrency, is poised for a breather.
The Ethereum blockchain’s native token has risen more than sixfold this year, surpassing Bitcoin’s 127 percent gain amid speculative frenzy for digital assets. Ether demand was increased by upgrades to the Ethereum network and its popularity as a platform for so-called decentralised financial services and digital collectibles.
As of 2:10 p.m. in Singapore on Monday, the virtual currency was about $160 lower than its all-time high of $4,866 set on November 10th.
According to Vijay Ayyar, CEO of Asia Pacific at crypto exchange Luno in Singapore, Ether has consolidated in recent days and the longer term outlook is favourable. “In the meanwhile, you’ll see Ether and the altcoin market move faster than Bitcoin,” he said. Other than Bitcoin, altcoins are important tokens.
A study based on Fibonacci ratios, natural proportions that are also used to identify market reversals, offers a word of caution.
The scale of Ether’s most recent increase, according to the research, is nearly identical to a June to September surge that later faded. This symmetrical pattern, according to some analysts, foreshadows a similar pullback presently.
A widely followed DeMark indicator is also flashing red, indicating that a market trend has run its course.
The TD Sequential study employs a counting method to analyse chart patterns. According to the study, Ether has printed the maximum 13 count, which indicates a downturn. The $4,998 mark is a significant threshold to keep an eye on; if it is breached, it indicates unexpected Ether strength, and the research will be reset.
Cryptocurrencies have seen some of the best returns in the market in 2021, with the Bloomberg Galaxy Crypto Index, for example, up roughly 262 percent. However, the industry’s well-known volatility continues to be a source of concern, and authorities are strengthening their regulation.