From December 16, during the week, the Ethereum rate rose from $ 83 to $ 138, a little more than 66%.
Over the past week, ETH has seen a record high number of short positions on major cryptocurrency trading platforms like BitMEX and Bitfinex.
As the price of Ethereum rose amid a strong corrective rally caused by oversold conditions, short contracts were squeezed out, allowing the price of the asset to recover.
Not all positive for Ethereum.
Although Ethereum rose by 66% in a short period of time, it is still lower by 91% from its historical maximum of $ 1448.
In traditional markets, 20% fall from a historic high is considered a bear market. In fact, even with a strong corrective rally, Ethereum and the rest of the cryptocurrency market remain in a bearish trend and are actively trying to recover.
A sharp breakthrough of the main resistance levels can also preserve the vulnerability of an asset for a sharp fall in the short term, especially if it cannot be supported by high trading volume.
Hsaka, a technical cryptocurrency analyst, confirmed that Ethereum is the best asset for short positions due to its high volatility and recent rally:
Quite serious differences between the structures of the ETH and the PTS. If you bet on maintaining correlation and returning both coins to structural equilibrium, ETH seems to be the best choice for short positions, and BTC for long ones.
A trader with the online nickname The Crypto Dog explains that Bitcoin ran into several major resistance levels ranging from $ 4000 to $ 6000, and while the number one cryptocurrency did not break out of this interval, it is difficult to determine the bottom in the cryptocurrency market:
$ 4000-4500 is an important resistance, and we can stop soon. It is also possible that it will increase slightly, but I do not think that it will grow much higher than $ 5400, and certainly not higher than $ 6300.
In the second half of December, Bitcoin, Ethereum, Bitcoin Cash, Ripple and many other crypto-assets showed a relatively large profit against the US dollar.
The ideal scenario for a cryptocurrency market is a gradual increase in value from the current value by January of next year so that the market can enter 2019 in a year with positive sentiment.
Will kryptranok dynamics?
Up to 66% of the ETH rally, Bitcoin Cash has tripled from $ 754 to $ 238, and Bitcoin has risen from $ 3210 to $ 4000.
The main cryptoactive assets showed significant daily trading volumes, with a daily volume on the crypto market, totaling about $ 20 billion. While the PTS and ETH can maintain their volumes, cryptocurrencies with a small market capitalization are likely to follow the price behavior of these two assets.
Joseph Lubin, co-founder of Ethereum, noted:
I call cryptographic 2018. This bottom is marked by the epic dimensions of fear, uncertainty and doubt among our friends with four- and five-digit cryptostates.