Bitcoin is not alone in setting new records at very round levels. The price of the second most popular cryptocurrency, Ethereum, is trading above $500. The high so far is $548 but liquidity remains relatively low.
The rise today is 8%, below the advance of around 13% that bitcoin is experiencing. But looking at the move since the beginning of the year, the price has risen by over 5000%, this is 50 times the value early in the year. BTC/USD increased by “only” 1000%. BTC/USD broke $10,000 and swiftly jumped above $11,000.
Looking at the chart, we can see clearer lines of support and resistance on the ETH/USD chart than on the BTC/USD one.
Ethereum is in use in ICOs, which are becoming more and more popular. The token offerings use ETH.
Support awaits at $495, the previous high seen a few days ago. Below, the swing high of $446 in July is a clear cushion. Taking one step lower, $426 served as a line of resistance and now switches to support and $391 is the last level to watch.
On the topside, it is hard to point out new levels, but perhaps $600 is the next round number we should watch out for.
More: On the Bitcoin Block: 7 Myths about trading cryptocurrencies
Here is the hourly chart, showing the recent rise.
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