Ethereum Doubled in Price In Less Than a Month – More Upside to Come

Ethereum ETHUSD
Ethereum ETHUSD

The second-biggest cryptocurrency following Bitcoin, Ethereum is on a tear higher this year. So as to celebrate its fifth year of existence, Ethereum doubled in value in the second half of July and the start of August. It rose from the $200 area to over $400, in a move with little pullbacks, filled with continuation patterns only.

Is it the demise of the USD that drives the price higher? Or the investors’ search for a new alternative for their investments? Or, even more, the excitement about the upcoming Ethereum 2.0 set to go live in 2020?

Ethereum 2.0 – A New Beginning

The Ethereum 2.0 project, to launch in phases (the first phase due out this upcoming fall), aims at challenging the Bitcoin’s blockchain dominance. Ethereum supporters argue that the Bitcoin blockchain is already too old for the current needs of society.

Ethereum 2.0 allows better scaling of the original project’s capabilities by improving some of its features such as abandoning proof-of-work and introducing “sharding,” a technology improving Ethereum’s speed considerably.

Regardless of the fundamental reason lying behind Ethereum’s meteoric rise in 2020, it even outpaced Bitcoin in terms of market performance.

Technical Analysis

Since it broke higher in the second part of July, Ethereum did not look bank a bit. With the exception of a sharp sell-off triggered by Bitcoin after it broke the $12,000 mark, Ethereum evolved in a strong bullish trend.

Speaking about the rising trend, it is still visible. The series of higher highs and higher lows continues, arguing for more strength moving forward.

Initially, Ethereum formed a pennant. A continuation pattern, it reached the measured move after the pennant broke higher.

Following the measured move’s completion, the flash crash generated by Bitcoin sent Ethereum back to support. On its bounce higher, it forms another triangle as a continuation pattern – a sign that more strength is about to come.

To trade it, place a pending order to buy at the recent highs, with a stop-loss at the lowest point in the new triangular pattern. Next, measure the distance from the entry to the stop and project it twice to the upside to find out the target for a 1:2 risk-reward ratio.

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