Meanwhile, Bitcoin Dominance, which measures Bitcoin’s market capitalization as a percentage of total crypto market capitalization, declined to 44%. Bitcoin’s market capitalization is currently above $1 trillion, while Ethereum has recently reached the $500 billion mark.
Recent reports indicated that Ethereum balance on exchanges reached a 23-month low which served as an additional bullish catalyst. The current market sentiment is very bullish, but it remains to be seen whether the rally in the crypto sphere will be able to continue without Bitcoin, which remains stuck below the $60,000 level.
Meanwhile, RSI has moved into the extremely overbought territory, and the risks of a pullback continue to increase. RSI is already close to the extreme highs that were reached back at the beginning of 2021. However, it should be noted that Ethereum had a short pullback in January of 2021 and quickly returned to growth after RSI moved closer to the moderate territory.
Today, Ethereum faced some resistance near $4370. A move above this level will signal that Ethereum is ready to continue its upside move. There are no strong resistance levels in the nearby as Ethereum is moving through record highs.
On the support side, the previous resistance at $4150 will serve as the first support level for Ethereum. In case Ethereum declines below this level, it will head towards the next support at $3775. A move below the support at $3775 will open the way to the test of the support at $3600.
For a look at all of today’s economic events, check out our economic calendar.