Investing.com – was unable to stay above the psychologically important threshold after its short trip above the $ 50,000 mark, possibly also because overbought market conditions on the fast time units thwarted the ambitions of the bulls. However, the outlook for the mother of all cryptocurrencies remains positive in the face of a possible supply shock ().
Ethereum as if in a frenzy
Meanwhile, the resistance cracked at $ 3,800 while briefly surpassing the $ 3 barrier before falling back to $ 2.95. Both Ether and ADA posted double-digit gains over the past seven trading days.
It is primarily the NFT, DeFi and Game FI boom that is fueling demand for ETH, said Mikhail Karkhalev, a financial analyst at Currency.com, in an exclusive comment to Investing.com.
“Ethereum is suitable as a hedging instrument for investors who invest in tokens from various projects,” said Karkhalev. “Both assets [ETH und ADA] are currently in a region where there are virtually no support and resistance levels left. At ETH, the last major resistance was at $ 3,600, which it was easily overcome. The primary goal now is to renew the previous high above $ 4,380. “
For Ethereum, it went up by almost 1.7 percent in the last 24 hours of trading and even by 21.8 percent in the last seven trading days. Since the beginning of the year, Ether has shot up a whopping 414.9 percent – and that doesn’t have to be the end of the flagpole.
As Anton Altement, CEO of Osom.Finance, told Investing.com, Ethereum could test the $ 4,000 area in the short term before heading for the next resistance cluster at $ 4,750-5,000. On the bottom, he makes relevant stop marks between $ 3,300 and $ 3,500. Ether could target these prices again “if a lot of people take their winnings off the table at once”.
Cardano after the record high
The Cardano blockchain’s ADA cryptocurrency climbed to a new record high of $ 3.08 on Thursday, but was unable to maintain the level and fell below the psychologically relevant mark of $ 3.00. Market participants are now eagerly awaiting the Alonzo upgrade on September 12th, which is all about smart contracts integration and caused the ADA rate to explode by 123 percent in August.
“Thanks to the Alonzo upgrade, Cardano will be able to offer smart contracts in the future. This has led to a huge hype, which is reflected in the price development,” as Marie Tatibouet, CMO at the crypto exchange Gate.io, told Investing.com.
According to Michael Cymbalisty, co-founder of Domination Finance, the biggest risk for ADA now is that Cardano does not launch its much-anticipated smart contract functionality in time.
However, Cardano has only recently reached an all-time high, and “who knows how high the price can rise if the overall market can maintain its bullish momentum,” continued Cymbalisty.
Because of the high volatility, however, there is a risk that Cardano will correct to 1.50 dollars, “especially if there is a negative flow of news around the Alonzo fork,” added Aton Altement.
The driver of the latest rally movement was a tweet by the Cardano chief developer IOHK under the direction of Charles Hoskinson, according to which the smart contract functionality in the Cardano testnet had been successfully used and the “Alonzo” upgrade for the Mainnet will focus, which “is still scheduled for September 12th.”
Behind rivals Bitcoin ($ 928 billion) and Ethereum’s Ether ($ 444 billion), Cardanos ADA is currently the third largest cryptocurrency by market capitalization ($ 94.5 billion).