The day shines with the price of Ethereum rising by over 7% to $460, the highest level in the last 13 months.
The price of Ethereum achieved more than 25% in a month, increasing its performance by more than 230% since the beginning of the year, outperforming the positive performance of Bitcoin, which has ‘stopped’ at +60% since January 1st.
These numbers demonstrate the return of confidence and part of the euphoria for cryptocurrencies.
In general, August 2020 was a brilliant month. Previously, for Bitcoin, only two other times the hottest month of the year ended positively, in 2013 and 2017. These are two years that have driven the biggest rises in the last quarter of the year (+730% in 2013; +210% in 2017).
These performances embarrassed the good gains of other important financial assets (S&P500 +8%; Gold +28%), in a particular period of our history that only a few months ago seemed to have cancelled out any possibility of redemption after the collapse in March, recording one of the darkest periods of the last century for all financial markets.
Among the big names, only TRON (TRX) does better than Ethereum with a rise above 13% from yesterday morning’s levels.
The podium of the day is conquered by Sushi with a jump of over 130%. The Sushi token, an evolution of the Uniswap DEX (decentralized exchange), a few days after the launch, or rather the fork, and after a heavy start, in the last two days has seen prices jump more than 10 times, triggering an influx of liquidity that currently makes it one of the most prominent applications in DeFi.
DeFi is the catalyst for the attention of operators, who continue to pour liquidity into ever more numerous applications. In the last few hours, the Total Value Locked (TVL) has been close to $9 billion. In just two months, locked collateral has increased from $2 billion to over $8 billion.
A dizzying rise that, on the one hand, is starting to make many latecomers tremble, but on the other, it definitively marks a new era for the cryptocurrency sector that, after two years of suffering, is beginning to reap the benefits of applications that have continued to pursue their projects (see Aave, Marker, Compound, Eidoo) even in times of great difficulty.
Total market capitalization is close to $390 billion, the highest peak since May 2018. This is largely thanks to altcoins, with the queen – Ethereum – achieving a rise over 13.5%, the highest market share since August 2018. Ripple remains at 3.4%.
Bitcoin price
It is starting to give some positive signals with prices rising above $11,850, a level that since mid-August, on two occasions, has rejected bullish attacks and has also become a defensive area for operators in options that in the last week have raised protection barriers in this area.
It becomes important to follow the movements in the next few hours of the day. A confirmation of the break will project prices towards the previous annual highs in the 12,500 area and then, if confirmed, to the psychological resistance test of 13,000 dollars.
Otherwise, it is necessary not to go under the $11,200 support, last time tested over the past weekend.
The price of Ethereum
As anticipated in yesterday morning’s report, the break of $440-445 immediately projected prices to test the second area of resistance between $460 and $465. The hedges of the professionals drove prices up by more than $15 in less than two hours.
Ethereum is reacting to a waiting period that has lasted far too long and is now attracting all the attention of the operators. Trading volumes in the last 24 hours remain high, at over $1.5 billion.
If the break of $460-465 were to find confirmation with new incoming purchases, an increase in the $500 area in the next few days cannot be ruled out.
Downwards, support of the $455 – former resistance – or lower between $425 and $405 should be maintained.
