Altcoins Surge as Bitcoin Falls Behind - Ethereum at New Record High, Dogecoin Attempts to Recover from SNL
Key Talking Points:
- Ethereum surpasses the $4,000 mark, just a week after crossing $3,000
- Dogecoin drops over 30% after Elon’s “hustle” comments on SNL
- Bitcoin continues to struggle just below $60,000
As Bitcoin continues to struggle in its attempt to surpass the 60,000 dollar mark, altcoins are taking over the crypto market. The likes of Ethereum, Litecoin, and Stellar continue to mark new all-time highs as they attract surging interest from investors.
But one altcoin that’s feeling slightly hungover from the weekend is Dogecoin. Elon Musk’s appearance on Saturday Night Live (SNL) didn’t really yield the results that crypto enthusiasts were eagerly awaiting. The self-proclaimed “Dogefather” confirmed the coin is a “hustle” after he replied that Dogecoin is “the future of currency. It’s an unstoppable financial vehicle that’s going to take over the world”
Dogecoin, which had risen to 70 cents of a dollar in anticipation of Musk’s appearance on the American comedy show, quickly dropped to 45 cents after the lack of expected support was evident. The coin is back above 50 cents this morning but there are clear signs of exhaustion which could limit bullish potential in the near future.
Elsewhere, Ethereum has surpassed the $4,000 mark for the first time. The second-largest cryptocurrency has surged over 2,200% in the last year, with ETHUSD around $224 in May 2020. This milestone comes just a week after it crossed the $3,000 line, with Ethereum being used to buy and sell other altcoins, which have also been surging lately.
ETHUSD continues to have a strong bullish bias with the ascending trendline offering support in the short term (3,725). As long as price stays above the 3,500 line then I would expect price to continue consolidating higher, with short-term resistances being taken out. If not, support could arise between 3,379 and 3,218 before further selling pressure builds.
Ethereum Daily Chart
Bitcoin continues to struggle just below the $60,000 mark, with the last few candlesticks showing buyers and sellers battling for control at this strong psychological level. The 5-day simple moving average is offering support just below ($56,720), which is helping buyers attract further momentum, although the stronger support can be found at 55,000. Immediate resistance can be found at 59,530, but even if buyers are able to push above 60,000, there will be strong resistance before they can get closer to the all-time high (64,862).
BTC/USD Daily chart
--- Written by Daniela Sabin Hathorn, Market Analyst
Follow Daniela on Twitter @HathornSabin
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.