The situation is somewhat different with the second cryptocurrency in terms of capitalization – Ethereum. During the day, the price has already grown by 5%, and the growth in the week has already amounted to 10%. This coin became the only one of the large-capitalized, whose dominance has grown over the past 7 days. As a result, Ethereum increased its market size by 2.5% from 16.3% to 18.79%.
This trend differs sharply from the general market and therefore we decided to analyze what is happening with the coin now. First, let’s take a look at the chart:
Ethereum’s rise is due to more news regarding the London hard fork. The team plans for this update to happen in late July – early August. And literally today, this hard fork will take place for the second time on the Rinkeby testnet. Depending on the total launch and work in this testnet, a decision will be made on the time of the hard fork in the mainnet.
Let’s go back to the chart. The price of the coin dropped to $1,717 at the end of June. Since then, the chart has grown by 37%. This made it possible to break through the strong downtrend and exit the falling triangle. These signals are definitely a good sign.
In addition, the chart returned to the lower border of the ascending channel. It was here that the chart was most of the time during its powerful growth in winter and spring. Now the price is testing it from the bottom up and this should alert us because we see a classic retest after the fall.
Doubts are added by the fact that during this growth, the trading volume practically did not increase and even decreased. The indicators do not give a clear picture of the current sideways movement, so you should not rely on them.
As such, Ethereum is now growing in anticipation of a major update. This is a strong fundamental factor. However, this contradicts the rest of the market sentiment. Given this factor, we would not advise buying this altcoin at current levels, as there is a very high likelihood of a new fall to the $2,000 mark.
The entire market is now in a phase in which trading is directly contraindicated. The correction at the end of May strongly influenced investor sentiment and the market moved into a downtrend. And as we know the well-known proverb – you cannot trade against the trend.