• Ethereum [ETH] experienced an impressive rally in the past two weeks, with investors seeing gains of over 30%.
• The rally put ETH an inch away from its November high of $1,680, and if BTC closes above $21K, ETH bulls could be incentivized to reclaim its November high.
• However, if bears gain more influence in the market, ETH could drop to $1,514.17, invalidating the bullish bias.
The past two weeks have seen a spectacular rally for Ethereum [ETH], with investors enjoying gains of over 30%. The digital asset had been trading just below the $1,200 mark prior to the bullish wave, and it has since been able to break through the $1,600 barrier and is now an inch away from its November high of $1,680.
The rally has been buoyed by a bullish Bitcoin price following the eased US inflation rate. This has made ETH a more attractive option for investors and has incentivized them to aim for the November high. At the time of writing, ETH is trading at $1,550, while BTC is trading below a short-term bearish order block at $20,956. If BTC manages to close above $21K, ETH holders could be further emboldened to reclaim the November high.
However, if bears gain more influence in the market, ETH could drop to $1,514.17, invalidating the bullish bias described above. Therefore, short traders should exercise caution and only bet against ETH’s uptrend if it drops below $1,514 to minimize risk. According to data provided by Santiment, the 30-day market value to realized value (MVRV) ratio of ETH has increased significantly, indicating an increase in trading volumes and short term profits for ETH holders.
Overall, ETH has seen a strong rally in the past two weeks, with investors enjoying gains of over 30%. With a bullish BTC following eased US inflation rates, ETH could aim at $1,644 or go above it. However, short-term traders should exercise caution and only bet against ETH’s uptrend if it drops below $1,514 to minimize risk.