Ethereum (ETH) Takes Out $3,500 On A Voracious Bull Run
Shain Vernier • 2 min read
Ethereum ETH has been on a tear lately and is in the midst of a nine-day winning streak. Over the past month, ETH is up more than 58%, testing the waters above $3,500 in the process. However, today has seen whipsaw action. Following an early-session breakout to all-time highs, price has pulled back significantly. Now, Ethereum is in danger of closing in the red for the first time in ten sessions.
There’s no doubt about it, 2021 has turned into the year of the cryptocurrency. Values are up across the board, with some altcoins posting rocketship performance. In addition to Ethereum, Dogecoin DOGE is back in the news today, taking out the vaunted $0.50 handle. Right now, it’s all about institutional adoption and media buzz in the cryptosphere.
For ETH, 2021’s performance has been robust. Prices have risen multifold, driving the market cap north of $370 billion. However, the rise of Ethereum may be different than that exhibited by other coins. In addition to being a cryptocurrency, ETH is a platform for building apps and facilitating various transactions via “smart contracts.” This functionality is growing popular in the decentralized finance (Defi) space and may be the future of finance altogether. When compared to many other speculative coins, Ethereum actually has a purpose; perhaps that will support its long-term growth.
Ethereum (ETH) Pulls Back From $3,500
The daily chart below gives us a good look at today’s action in Ethereum. Volatility has been high after a failed auction above $3,500.
Bottom Line: Although ETH is in the red, a bullish bias remains warranted. If we see a pullback to the $3000 area, then a buying opportunity may come into view. Until elected, I’ll be looking to buy Ethereum from $3025. With an initial stop loss at $2850, this trade produces $175 per ETH (5.7%) on a bounce from the current 38% Fibonacci retracement level.