Last Friday, ahead of one of the most anticipated weekends for cryptocurrency in the asset class’s short but explosive history, Sam Blumenfeld asked a simple question: When will Ethereum cross $4,000?
There wasn’t much discussion of Elon Musk, Dogecoin (DOGE, Tech/Adoption Grade “B-”) and/or “Saturday Night Live.”
Indeed, Sam’s contribution to the May 7 issue of Weiss Crypto Alert seems pretty prescient now, as Ethereum (ETH, Tech/Adoption “A-”), the world’s second-largest cryptocurrency by market capitalization, crossed that psychologically significant threshold a little after 11:00 p.m. ET Sunday night, according to CoinMarketCap.com.
And Dogecoin — the Tesla Inc. (Nasdaq: TSLA) founder’s favorite coin — is holding north of 50 cents after surging toward 74 cents leading up to the “Dogefather’s” hosting gig on the venerable late-night comedy show, much of the mirth now removed.
Here’s how Sam previewed what was an exciting weekend for crypto:
Ethereum has continued its torrid performance, and its dominance in the decentralized finance (DeFi) space has it set to extend its current run to new all-time highs.
Despite tremendous network congestion and sky-high gas fees, the second-largest cryptocurrency by market capitalization is retaining its advantage as first adopter.
Ethereum is trading well above its 21-day moving average, and there’s no reason to think that a big change will occur with the exceptions of reasonable profit-taking or a market-wide correction.
Here’s Ethereum’s price in U.S. dollars via Coinbase Global, Inc. (Nasdaq: COIN):
Bitcoin has managed to retake its 21-day moving average, which is a positive sign. If it’s able to sustain above this measure despite the outflows into altcoins and the reduction of its market dominance, it’s a highly bullish sign for another potential breakout.
While Bitcoin has struggled lately in comparison with the rest of the crypto market, it has at least recovered from its correction lows under $50,000. While it’s possible we could see a retest of these levels if it breaks below its critical 21-day moving average, it could break out in a big way if the levels hold.
Here’s Bitcoin’s price in U.S. dollars via Coinbase:
The crypto market has been on fire lately, and we’ve seen an explosive altseason thus far. There is currently nothing pointing to a rapid reversal, aside from a healthy correction, so we’ll continue monitoring developments as they unfold.
The flow of capital in crypto usually enters Bitcoin first, where it then trickles into the large-caps and other established projects before flowing into the mid- and small-caps. We’re seeing this play out right now.
Ethereum’s scorching hot performance recently is a positive sign that altseason is progressing as expected, with even more flows from Ethereum into less established cryptos likely coming soon.
Despite Bitcoin’s relative stagnation compared to the broader market, it’s a good sign that it’s at least holding steady in a range.
Widespread corporate adoption and institutional demand should help offset outflows, and it may just be a matter of time before the King of Crypto takes off again.
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Best,
David Dittman
