Ethereum stole Bitcoin’s limelight yesterday evening with a quite sensational 13.5% rally to the upside following the daily candle close.
After testing the $146 level of support Ethereum spiked all the way to $177 before beginning to build support in the $173 region.
It now continues to look bullish after confirming a breakout, with an upside price target emerging at the $181 level of resistance.
Several analysts have claimed that the hike in price is due to the upcoming network upgrade that will be released in July.
The Ethereum 2.0 upgrade, often dubbed as Serenity, will implement a new security model under proof-of-stake (PoS) while also promising more efficient transactions.
It’s thought that optimism surrounding the update has caused traders to opt for Ethereum when choosing which cryptocurrency breakout to buy.
Bitcoin also rallied overnight, surging to above $7,400 to form a three-week high as it takes aim at the daily 200 moving average at $8,088.
The rise in price has been reflected across all major capital markets with S&P500 futures suggesting that the US stock market index will see a 7.5% hike later today.
But it has been Ethereum that has stolen the headlines with the highest percentage gain of all. It now needs to continue trading above $158 in order to avoid a fake out as it sets its sights on the psychological level of $200.
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Ethereum was launched by Vitalik Buterin on July 30 2015. He was a researcher and programmer working on Bitcoin Magazine and he initially wrote a whitepaper in 2013 describing Ethereum.
Buterin had proposed that Bitcoin needed a scripting language. He decided to develop a new platform with a more general scripting language when he couldn’t get buy-in to his proposal.
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