The strength of the ETH trend is difficult to describe in words. The incredible greed of investors, which forces them to actively buy ETH at historical highs, shows the great prospects of the coin in 2021. Less than a week after writing the previous article, buyers found themselves near the last sellers’ walls, and just around the range of $1255-$1360. Yesterday’s attempt by sellers to complete the positive in the Ethereum market and reverse the local growth trend failed:
The weakness of sellers at historical highs and a critical point of $1150
So far, sellers are quite sluggish in responding to buyers’ aggression and look weak. It is better to compare the ambitions of sellers on 4 January, when they tried to bend their line with yesterday’s pre-death convulsions. The worst-case scenario currently threatening the Ethereum market is the test of $890. Loss of $1150 by buyers will trigger stop orders from investors who have bought ETH for short-term purposes starting from 3 December. Though, there are no signals on the chart or in the news background. And the general background of the crypto market suggests the continuation of an active growth trend, rejecting all the logical arguments for correction.
ETH influence is doomed to grow in 2021
The growth of ETH dominance in the crypto market has slowed. After a confident break of the critical mark of 12.4%, the dominance indicator is in correction:
The correction on the Ethereum dominance chart is caused by BTC’s new feat in updating historical highs. Although given the mechanism of Ethereum 2.0. demand for ETH should only grow. And its dominance should increase. The systematic increase of Ethereum 2.0 validators reduces the number of ETH coins on exchanges. Such a mechanism is doomed to success in the long run if the projects do not have fuckups. Therefore, we expect the ETH historical high update in January, and we are closely following the critical mark of $1150.