Ethereum is attempting to break out to new all-time highs for the fourth time when seen on a one-hour chart.
Tailwinds for higher highs:
1) Grayscale lock-up ends Feb 3 which should help bitcoin breakout of its current consolidation over the coming several days.
2) Bitcoin and ethereum number of addresses at all-time highs.
3) A huge amount of bitcoin has moved off exchanges suggesting many long-term holders.
4) SOPR (spent output profit ratio) hit the 1.0 line which suggests a nice reset for a new bull run in bitcoin.
5) The number of new wallet holders is trending sharply higher.
Headwinds which would keep ethereum in its sloppy sideways consolidation:
The dollar is bouncing which is negative for cryptocurrencies. There are record shorts on the dollar because it is believed we will get reflation now, thus a spiking dollar. But this goes against COVID issues and continued economic weakness from the lockdowns. Nevertheless, if major institutions have to start selling to meet margin calls due to issues originating from Reddit gang tackles on buying up various stocks and commodities, this will drag down the stock market and spike the dollar. This would be a short-lived effect with the overall downtrend in the dollar and uptrend in ethereum still intact, but could cause brief weakness in cryptocurrencies.
Market Lab Report - ETHE attempted breakout (again)
|Published:||2 Feb 2021 05:33 ET|
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