Insights > Technical analysis > New all-time high on Ethereum at $1,570, Bitcoin stays strong

New all-time high on Ethereum at $1,570, Bitcoin stays strong

3 February 2021

temps de lecture 4 minutes

avatar-auteurJulien Moretto

On January 29, a tweet from Elon Musk, CEO of Tesla, caused a sudden 15% rise in the price of Bitcoin. However, this increase was only short-lived. The asset therefore remains in a consolidation phase, with an 11% increase in one week to quote around €30,000 ($36,000) on February 3. The underlying trend remains bullish but the €31,500 ($38,000) must be broken up to continue it in the short term.

On altcoins side, it is Ethereum that attracts attention, breaking its all-time high and appreciating 11% this week. Many market players recognize the strong potential of the asset for 2021. The Decentralized Finance Ecosystem (DeFi) remains in shape with Uniswap and Aave projects gaining 40% and 10% respectively, and continue their ascent in the capitalization ranking.

On the financial markets, the past few days have been marked mainly by the story about GameStop stocks, which went from $20 to more than $400 in just a few days. Originally, a forum of individual investors on the Reddit website, called WallStreetBets, provoked massive purchases of shares in order to “counter” hedge funds that were strongly betting on the decline in the value of the GameStop company. An event that reminds us that, in the age of the Internet, certain phenomena can take on an unexpected scale. The same kind of buying frenzy occurred on certain cryptocurrencies such as Dogecoin or XRP. We could therefore see similar phenomena repeating themselves. But beware, if these rallies are impressive, they are often unsustainable.

  • According to CoinGecko, market capitalization is still growing and is approaching 1,100 billion compared to 970 billion last week.
  • Bitcoin’s dominance fell from 62 to 61% market share in one week.
  • The best performance of the top 50 is to be attributed to Dogecoin (DOGE) with +290% over one week.

We invite you to discover our analysis in video (in french and dated February 2nd) :

Bitcoin (BTC)

Coinhouse’s recommendation :
Buy on breakout

  • Despite the volatility of January 29, caused by Elon Musk’s tweet, Bitcoin’s price remains in a consolidation phase, globally between €24,400 and €30,800 ($30,000 and $38,000). The asset is quoted around €30,000 ($36,000) but the clean continuation of the uptrend will only be confirmed when the $38,000 is broken, which will be a buy signal on break. To buy back in case of a new correction, we are still watching the zone between €22,000 and 24,400 ($26,900 and $29,800).

Ethereum (ETH)

Coinhouse’s recommendation :
Buy

  • The situation is good on Ethereum (ETH) which appreciates by 11%, at €1280 ($1550). The price has just finished a day above €1180 ($1430): it’s a buy signal on breakout, and we can target a profit taking zone between 1420 and 1580 ($1710 and $1900). In the event of a sudden bearish turn, we will wait for the €780-€880 ($940-$1060) zone to make new purchases.

Ripple (XRP)

Coinhouse’s recommendation :
Wait

  • Ripple (XRP) gained 43% over the week at €0.31 ($0.38), but remains the symbol of the unsustainable increases linked to the recent madness around WallStreetBets. On February 1, the price momentarily reached $0.75, an increase of 165% in 3 days, before violently falling back by more than 50% to currently stabilize around €0.29 ($0.35), which remains a technical polarity zone. The most aggressive will be able to try again to buy on this zone which was already used as a support in the past, to play a return in the zone of the 0,65/0,75$. But we advise against positioning oneself on this asset whose technical structure remains far too confusing. We consider that other cryptocurrencies projects are more interesting, both technically and fundamentally.

Tops & flops of the week (top 50 marketcap)


Tops

1- Dogecoin (DOGE) : +295%
2- Terra (LUNA): +81%
3- Sushi: +71%


Flops

1- Crypto.com Coin (CRO) : -8%
2- Theta Network (THETA): -3,2%
3- Celsius Network (CEL) : -1,7%

In this article, all information is given for information purposes only, even if it has been established from serious and reputable sources. It does not constitute an offer by Coinhouse to buy or sell digital assets, or an offer to provide services on digital assets, nor does it constitute advice, encouragement or a recommendation to operate on the digital assets in question. It constitutes simple information over which the user holds absolute control. We inform you that if you choose to invest in digital assets, you must be aware of our general terms and conditions of sale (https://bit.ly/2FGW2ek) and accept the various risks listed and defined on our legal warning page (https://bit.ly/3c4sQKc).

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