- Ethereum price stagnates below $2k
- Bitcoin evolves, institutions take notice
- Altcoins rally in Q1 2021
Trending News: Zilliqa and altcoins superb performance, Bitcoin evolution, and Ethereum Solution for Gas fees
Altcoins, which survived the grueling crypto winter of 2018, building on their MVPs and operating from their mainnets, have registered tremendous success in the last few months.
The Altcoin Super Rally of Q1 2021
Take a case for Zilliqa, for instance. After their $22 million ICO in 2017 and weathering harsh operating conditions, they are now up 50X year-to-date and focusing on DeFi.
Meanwhile, Cardano–whose developers said they would be unyielding in building and rolling out Byron, is one of the top beneficiaries of the crypto Bull Run from 2020.
Cardano now has Byron, is riding on Shelley’s success, and plans to activate smart contracting and DeFi in the next few weeks. ADA is now available for trading on Coinbase.
Amid altcoins’ superior performance is the metamorphosis of Bitcoin.
The endorsement from Morgan Stanley, one of the world’s leading investment banks managing over $4 trillion of assets, is a shot in the arm.
Institutional investors may be angling for a piece of BTC. The only legal means is exposure via regulated rails of which few institutions in the U.S. offer.
Therefore, Morgan Stanley’s presence is tremendous and positive for BTC, looking to break into the institutional fold.
H2 2021 to be Layer-2 Migration Season for DeFi Protocols
Ethereum’s lead in DeFi and smart contracting will remain as it is, even increases in the coming days.
The network, cognizant of inherent scalability challenges, is launching solutions. Eth2 development is being accelerated while developers are also looking into Layer-2 options.
Most DeFi projects are already looking into Optimistic and ZK-Rollups as feasible options.
As such, observers say H2 2021 will be a Layer-2 migration season, a move that will offer support for Ethereum prices.
Ethereum Price Analysis
The Ethereum price is stable, even lower than the USD and BTC.
However, the path of least resistance is northwards in the immediate term. This overview will be cemented, especially if the ETH/USD breaks from the current consolidation to the upside.
As per the daily chart’s candlestick arrangement, the ETH/USD crucial trade range is between $2k and $1.7k, respectively. The $2k level marks Feb 2021 high while $1.7k is around Mar 2021 lows and the middle BB.
Noticeably, trading volumes are lower, pales in comparison to the climactic loss of Feb 23. On that day, ETH prices fell to bears, dropping to $1.5k. Subsequent bars are within Feb 22 and 23 trade range. Therefore, from volume analysis, this is bearish. Subsequently, if ETH/USD prices slide below $1.7k in the coming few days, ETH could dump to $1.5k—the first bear target, in a retest.
On the flip side, gains above $2k may see the ETH/USD price soar to $2.1k—the 1.618 Fibonacci extension level of the Dec 2020 and Jan 2021 trade range, in a buy trend continuation pattern.
Chart courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies.