Ethereum Targets High Despite Elevated Price Correction
In spite of the soaring greenback on Friday, Ethereum, the world leading altcoin, maintained its bullish activity above $4,700.
The near-term technical for the aforementioned altcoin suggest diminishing bullish momentum over the past day.
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Ethereum operates as a decentralized blockchain network and hosts Ether, a crypto that is used as the fuel for decentralized applications on the network.
The market capitalization of Ether has quickly rivaled that of Bitcoin since it launched in 2015.
A major altcoin oscillated in an upward trend between two parallel channels for 44 days. ETH maintained its uptrend over the past month, registering a monthly return of 33.42%.
This resulted in the altcoin reaching an all-time high on 10 November at $4,868. As a result, the 4-hour chart showed price action reversing as bears countered the buying power.
Although the price stepped back into the trend, the bulls found strong support at the lower trendline. During the last 24 hours, the near-term technical indicated a significant decline in buying power.
Ethereum, however, has a bullish bias. The price will be revisited if the price reaches the $5k resistance level, where bears might take over and lead the market into a short correction.
It comes amid growing interest in DeFi, a new trend in the crypto market that seeks to build financial applications for the blockchain, such as lending and trading.
DeFi relies heavily on Ethereum. Uniswap, a decentralized exchange, and Aave, a lending platform, are two of the largest DeFi services that run on the Ethereum network.