Ethereum is exploding higher despite a strong Bitcoin correction just hours ago. The price of Bitcoin fell as low as $17,500 on leading exchanges this morning as the institutional buying that kept the price afloat during the week abated over the weekend.
BTC has since bounced back since hitting those lows. Ethereum, too, has rallied: the coin is up around 10% from the daily lows, pushing from the $515 lows to $570 as of this article’s writing.
With Ethereum setting new year-to-date highs as Bitcoin stagnates and attempts to consolidate, this seems to suggest that capital is cycling from BTC into altcoins.
This much is made clear by strong rallies in the altcoin market, including gains in leading DeFi coins and in older cryptocurrencies from the previous bull market.
Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom
Ethereum is Facing Strong Selling Pressure
While analysts are hopeful that Ethereum will continue to explode higher, one analyst recently noted that order book data shows that the coin is facing down key selling pressure.
The chart shows that Ethereum is showing clear sell walls in the $600 region, which many analysts are eyeing next.
“Serious market buying going on, but the ask side is stacked. I don’t expect us to break 600 today,” the analyst said in reference to the data seen below.
Ethereum hasn’t traded in the $600 range since the middle of 2018. ETH hitting $600 would mean that it would be up approximately 350% on the year.
Data of ETH's order books from crypto trader Byzantine General (Byzgen on Twitter).
Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin
ETH2 Inches Closer
This rally comes as ETH2 has inched closer as well.
Ethereum founder Vitalik Buterin recently commented on the token-economics of ETH2:
“In two years the main task will be to stabilize and cherish what we will have built. Until then, participation in Ethereum is unavoidably in part a prediction that the roadmap is a good one and that once this upgrading process ends we actually will get to a place where the network is efficient and stable and powerful and capable of being the base of significant parts of the global economy.”
Analysts expect Ethereum to rally in the longer run as ETH stakers can earn a regular yield paid in ETH.
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Title