• Ethereum (ETH, Tech/Adoption Grade “A”) shot through resistance and continues its climb back to all-time high.
• Polygon (MATIC) displaying signs of a bullish chart pattern.
• Chainlink (LINK) facing stiff resistance once again.
In Monday’s issue of Weiss Crypto Alert, our very own Marija Matic noted that Ethereum was on the verge of a breakout.
And that’s exactly what we’re seeing today.
Since ETH broke through the resistance range between $3,300 and $3,400, it has shot up above the $3,500 level. In fact, ETH broke through to $3,751 earlier today before pulling back to $3,711. We’ll wait to see if ETH needs to regroup at this level, or if it’ll continue to climb.
With all the growth of both Ethereum’s decentralized finance (DeFi) ecosystem and more recently the growth of NFTs it should not be a surprise to see ETH gaining in price. Ethereum is now very close to becoming a household name … if it is not there already.
At this point, it sure seems that the crypto market can be broken up into Bitcoin (BTC, Tech/Adoption Grade “A-”), Ethereum and everything else.
Here’s ETH in U.S. dollar terms via Bittrex:
Polygon was one of the big winners in the first half of 2021, but it has since lost momentum after posting a much slower Q3 and dropped from its cycle high near $1.70.
MATIC is now trading just above $1.40.
But more important than the price is the technical setup on the chart. It appears that MATIC is showing the signs of a bullish descending wedge, with support set near the $1.30 mark.
This is a classic bullish pattern that tends to end with an upwards breakout after the price contracts long enough.
With the growing popularity of Ethereum’s non-fungible tokens (NFTs) and the newfound attention of NFT investors in other ecosystems — like Solana (SOL) — there is an obvious opportunity for Polygon.
If they can get their NFT ecosystem up off the ground quick enough, the Polygon network might find an entire new set of fans.
Things look great for Polygon right now.
Here’s MATIC in U.S. dollar terms via Coinbase:
Chainlink has been trying to break back above $30 for the last few weeks, which goes to show just how well it has already recovered from its low of under $14 posted in late July.
There is some resistance at $28.75 that LINK has struggled overcome. And if it does, it’ll still face more resistance once again at $30.
That said, we expect Chainlink to eventually establish a new base for itself with $30 as a support level before it kicks off the next run of the bull market.
In order for that to happen, LINK will need to cross back above $30 and record three or more closes above that mark to establish support.
DeFi tokens have been struggling as of late, but we fully expect another rally in the DeFi sector sometime soon. LINK will likely be one of the big winners in that push.
Here’s LINK in U.S. dollar terms via Coinbase:
Notable News, Notes and Tweets
What’s Next
Ethereum has been cementing itself as a market leader all year long. This latest price action just highlights the growth in the world’s largest smart-contract ecosystem. ETH has outgained BTC tremendously all year long, and it posted over 30% gains this month.
Outpacing Bitcoin as one of the best performing assets in crypto history, ETH is nothing to scoff at.
Retail interest in Bitcoin has dropped for the moment, which has opened up the door for the ETH/BTC pair to potentially set a new yearly high.
That, combined with the downtrend in Bitcoin dominance, shows that the market is ripe for a boom in altcoins.
We’ve seen assets like Solana and Cardano (ADA, Tech/Adoption “B-”) breakout recently, but that hasn’t trickled down to the rest of the space just yet. The DeFi sector is one glaring example of assets that have been underperforming the market lately.
We expect that to change at some point. We’ve seen what can happen when DeFi steals the show — we need only to look back at last summer for that. So, we’re excited for the opportunity to see it again.
There is some worry that September may be a slow month for the space overall, but technical signals aren’t pointing to that yet.
In fact, the technicals seem to be pointing towards another nice bump up in prices market wide.
Until then, you’ll have to wait and see. And keep checking Weiss Crypto Alert for your timely market updates.
Best,
Alex
