Ethereum tumbles by 9% after breaching new all-time high
Ethereum has stolen the limelight from Bitcoin this week, forming a new all-time high of $1,440 while Bitcoin consolidated in a range between $34,000 and $37,000.
However, Ethereum failed to resist against a market-wide sell-off on Wednesday morning, with it plunging by more than 9% to as low as $1,238 before finding a bounce.
The move to the downside coincided with a drop in the price of Bitcoin, which has been attributed to a lack of bullish momentum to the upside.
Whilst investors will be looking on nervously as Ethereum continues its plight to the downside, it remains bullish on all higher time frames and most importantly from a macro perspective.
The recent high of $1,440 marks the fourth consecutive higher high, while there has also been sequential lower highs to the downside, indicating a clear uptrend.
ETHUSD chart by TradingView
Ethereum will only fall into bearish territory upon a reversal, which would be triggered if it begins closing daily candles below the psychological level of support at $1,000.
This would only happen if Bitcoin continues to lose momentum and tumble below $30,000 and if Ethereum falls back to around 0.03 against its BTC trading pair.
All eyes will be on how Ethereum performs on February 10, as this marks the listing of Ethereum futures on the CME.
While this event is considered by many to be bullish, Bitcoin’s listing on the CME in December 2017 marked the top of the bull market.
What we can expect this time around is a rally in the price of Ethereum moving into the event before a subsequent sell-off in fear that history may repeat itself.