Ethereum [ETH] reclaims number two spot from XRP: Technical Analysis
The cryptocurrency industry gained some lost ground last week as it added $10 billion to the market cap which took it past the psychological threshold of $120 billion. Led by Litecoin [LTC], the rally surprised many and LTC prices saw a surge of nearly 30 percent in a span of 24 hrs. Bitcoin also joined the party after weeks of sluggish activity. At the time of print, Bitcoin is hovering around the $3650 mark and is marginally down by 0.03 percent. Another big player, Ethereum [ETH] has been at the receiving end in recent weeks. But the pump that pushed the crypto market up last Friday saw it surge from $105 to $120 by Saturday. However, the surge has continued over the past 24 hrs and it reached an intraday and weekly high of $125. At the time of press, ETH is trading at $120.77, up by 2.62 percent. Daily volume of the digital asset has surged to 3.1 billion and as a result of that ETH has pushed XRP to the third position and has reclaimed the number 2 spot making it the largest altcoin in terms of market cap.
A closer look at the chart shows that there are more chances of gains above $120 for ETH. At the time of print, the coin well above the support level at $105.5500 and has breached the key resistance at $110.9200. Another important factor is that the price has stayed well above the $114 support level and the 100 hourly simple moving average. The pair broke the $122 high and achieved a new monthly high of $125. Later, a sharp downside correction occurred below the $122 level and now there’s quite a possibility that the currency might correct further towards the $116 mark. The hourly RSI indicator stands at 54.7173 and the coin is approaching the overbought level. The MACD shows that the coin is in the bullish zone and the 100 EMA line suggests an uptrend.
At the time of print, ETH is up by 2.65 percent and one ETH is equivalent to 0.03306387 BTC.
In an interesting development last week which came as a surprise to many, Ethereum Foundation put to rest all the rumors surrounding the alleged plans to spend $15 million on the development of Verifiable Delay Functions (VDFs) for use in its transition to a Proof-of-Stake (PoS) network.
Reports suggest that Ethereum is facing intense competition from EOS and Tron. The number of dApps on the Ethereum blockchain has recorded a dip. Data from DappRadar suggests that only three of the 50 top dApps are running on the Ethereum blockchain. Out of the top 50 dApps, 21 dApps run on Tron blockchain while 26 runs on the EOS blockchain.
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