Crypto Update: Ethereum Breaks-Out above $700, Following IOTA to New Highs

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The advancing trend continues to dominate the cryptocurrency segment with some of the major coins already breaking out to new rally highs in the last couple of days. While most of the largest currencies are still trading in the consolidation patterns that developed last week, the leaders of the rally continue to show strength, and today, Ethereum popped higher in early trading.






ETH/USD, 4-Hour Chart Analysis

As ETH has been the most prominent leader of the late-April rally the move could kick-start the next leg higher in the segment, should the second largest coin hold on to its gains and successfully tackle the strong resistance zone just ahead in the $735-$780 area. The coin remains on a short-term buy signal and long-term investors should hold on to their coins here too. Above the $780 level, the next target is at $845 while key support levels are found between $625 and $650 and between $555 and $575.

BTC/USD, 4-Hour Chart Analysis

Bitcoin is still struggling to get back over the crucial $9000-$9200 zone, despite the move in Ethereum, but the rising trend is not in danger as of now, and the consolidation pattern continues to be bullish. In the case of a breakout, a quick move towards $10,000 is expected, with the next level of interest ahead at $10,500. Short-term support is found near $8700, with a stronger level at $8400.

IOTA Leading the Way Higher as Small Caps Show Promise






IOT/USD, 4-Hour Chart Analysis

IOTA finally broke out above the $2.2 level, surpassing the next resistance level at $2.35 in the process, but for now, that level continues to be in the centre of attention. The rally is still expected to continue, with the coin on a short-term buy signal, and a test of the $2.6 level is likely.

That said, long-term investors could already start reducing their holdings during the current upswing, as the coin is getting overbought after the strong advance.

On another positive note, several small-cap coins are also on the move today, with Vechain, Nano, and Ontology, and Lisk all trading at new rally highs, while Cardano is also attempting a move among the larger altcoins.

As correlations continue to drift lower, getting in line with bull market conditions, we expect the coins to remain divergent, but all in all, the advancing trend will likely continue in the coming weeks.




Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

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