Ethereum is leading the crypto market higher as it reclaims $151, bursting through resistance at $132.
The blockchain platform has pushed Ripple’s XRP into third place as its market cap rockets to $15.8 billion.
Now all eyes are on further progress to bring $200 into view. ETH is 12% higher over the past 24 hours being buoyed by the looming launch of the Constantinople software upgrade.
Although proof of stake, delegated or otherwise, is still some way in the future, the fact that Constantinople is happening is a sign that development remains ongoing, unlike with the bitcoin protocol.
On the technical front, ETH has pierced the Ichimoku cloud resistance for the first time since May, as seen in the chart below. That was also when ETH was last trading above is 50-day EMA (red line).
Ethereum is also being helped by its second place ranking in the CHina unofficial government rankings.
ETH was the main beneficiary of the ICO mania in 2018 which helped to explain its subsequent 90% fall from all-time highs. However, the US CFTC’s call for information on ETH has ignited hoped of a futures product coming to market.
We are setting a medium term target for ETH at 207, given to us at the point at which the market imploded following the Bitcoin Cash fork debacle on 14 November.
The relative strength index is high at 62 which means bulls should tread carefully as trading volume has not yet risen to the challenge to sustain the rally. However, with bitcoin also advancing today to reclaim $3900, the wider market should provide assistance.
Arthur Hayes of BitMEX exchange thinks the ICO market is not done yet and when it picks up steam again, ETH will be the main beneficiary:
“Once there are new issues, then Ether will rebound aggressively. When the ICO market returns, Ether will quickly test $200. The timing of the ICO rebirth is 12 to 18 months out”