This intense upwards rally has allowed the cryptocurrency to break above a key resistance level that had previously been suppressing its price action, suggesting that it could rally significantly further before facing any intense resistance.
Furthermore, this rally has also coincided with a rapid surge in the crypto’s fundamental strength, which is elucidated while looking towards its transaction counts and active addresses.
Ethereum Smashes Past Key BTC Resistance Level as Bulls Maintain Their Momentum
At the time of writing, Ethereum is trading up over 5% at its current price of $281, which marks a massive climb from its daily lows of nearly $260 that were set yesterday when bears attempted to spark a selloff.
The magnitude of ETH’s recent rally is clearly seen while looking at its price action throughout the month of February, as it has been able to climb over 100% from lows of $180.
This has allowed it to significantly outperform both Bitcoin and the aggregated crypto markets, making it one of the top performing major altcoins throughout 2020, alongside Tezos and a handful of other tokens.
While looking at ETH’s BTC trading pair, it is currently trading up roughly 5% at its current price of 0.0274, and Jacob Canfield – a prominent analyst – recently explained that he believes it could run to 0.036 before finding meaningful resistance.
“From a very high time frame perspective, ethereum just broke a major resistance level that served as support for the last 2 years. The .147 fibonacci level may be the first level of resistance for the eth btc pair around .036. A retest of .024 could be a great place to long,” he explained.
From a very high time frame perspective, #ethereum just broke a major resistance level that served as support for the last 2 years.
The .147 fibonacci level may be the first level of resistance for the $eth #btc pair around .036.
A retest of .024 could be a great place to long. pic.twitter.com/gKFYBuRO0d
— Jacob Canfield (@JacobCanfield) February 14, 2020
ETH Rally Bolstered by Robust Fundamentals
This recent rally has also allowed Ethereum to garner incredibly strong fundamentals, with its active addresses and transaction count surging.
“Inline with $ETH’s price rally, Ethereum network usage is on the rise. In the last 7 days: Active addresses are up 26.7%. Transaction count is up 20.77%. Gas usage has hit highs not seen since September last year,” Glassnode explained in a recent tweet.
Inline with $ETH’s price rally, #Ethereum network usage is on the rise.
In the last 7 days:
Active addresses are up 26.7%
Transaction count is up 20.77%
Gas usage has hit highs not seen since September last year.https://t.co/7kr4dLf5ZL pic.twitter.com/DLFCuvBhWv
— glassnode (@glassnode) February 14, 2020
These fundamental factors coupled with Ethereum’s recent break above key resistance could help ETH see some significant upwards momentum.
Featured image from Shutterstock.