According to the technical indicators, Ether is at the most overbought level since May 2019. The coin is flashing worrying signals even though it has more than doubled this year. The GTI Global Strength Indicator that is used to measure movements of consecutive closing prices indicates Ether to go as high to 92.7 this week. When the indicator exceeds 70, the asset is considered overbought, whereas if it remains below 30, it is deemed to be oversold.
The senior market analyst at Oanda Corp, Edward Moya, said that the momentum is enlightening the little run Ether has put together. He further added that the momentum could continue, but if it gets out of control, the asset will find resistance in the region of $400 to $440 which is approximately the midpoint 2018s high record.
Not only Ether, but almost all cryptocurrencies are also seen to undergo revival this year with both small and large tokens experiencing substantial gains. Altcoins, including Kick and Einsteinium, have more than doubled, and bitcoin is hiked by 40%.
Sudden Events That Shook Up The Global Markets Benefited Crypto
As per the industry’s economists and some investors, digital assets like Ether benefit most when unexpected events like coronavirus outbreak shake the markets globally. At these events, they argue that digital assets can act as a harbour. Investors are left to analyze the technical trends again as the year’s rally is coinciding with the U.S. stocks record-highs.
In recent days, firms like Grayscale Investments have also touted their virtues amind the Ether’s rally. The digital-asset manager and fund provider at Grayscale Investments said that it is the generated technological and social momentum that would bring difficulty for competing platforms to replicate.