Ethereum and Bitcoin are both moving lower on the day, although the former is holding up much better than the latter.
At last check, Ethereum is down about 1% to $4,580 while Bitcoin is down about 2.7% to $63,760.
While the two continue to chop around, let’s not forget that they are both coming off a recent all-time high from last week.
There’s always been a lot of arguments in play for cryptocurrencies. While some (like Kyle Bass) don’t see it exploding higher, the arguments have shifted to other factors aside from price.
For instance, the environmental impact of crypto mining is being scrutinized.
At the same time, Miami citizens are looking to receive a “Bitcoin yield” from the city’s crypto holdings.
Despite the constant barrage of headlines, the top two cryptocurrencies continue to trade pretty well. Let’s look at Ethereum.
Since basing in September, Ethereum has been on a strong run to the upside. It reclaimed its 50-day moving average on Oct. 1 and since doing so, has ridden its short-term moving average higher.
That trend is wobbling a bit after its extension to all-time highs. In the process, Ethereum perfectly climbed to the 161.8% extension before backing off.
It’s quietly down in six of the last seven days, but continues to trade above the 21-day moving average and the prior all-time high up near $4,380.
As long as it remains above the latter price, I will remain bullish on Ethereum.
Below that level and it could drum up additional selling pressure. Specifically it could put the 10-week and 50-day moving averages in play, along the August high near $4,025.
However, if support holds up — particularly the 21-day and the former high near $4,400 — then I’m looking for an eventual push up to all-time highs and $5,000.
Should Ethereum clear $5,000, it could quickly open the door up to the $6,000 level.
Between $6,035 and $6,255, Ethereum will find various extensions from notable ranges. Mainly, that’s the 161.8% extension of its larger range and the 261.8% extension from the more recent range.