On Wednesday, Ethereum edged slightly lower, extending Tuesday’s pullback towards $4,730. The (ETH/USD) had spiked to trade above $4,800, setting a new all-time high. The pullback comes despite the news that Ethereum trading volume exceeded bitcoin (BTC/USD) for the second successive quarter in Q3.
The Ethereum blockchain platform’s native cryptocurrency is driven by the growing interest in Decentralised Finance (DeFi) and the rapid growth of the non-fungible token market. The platform sets the benchmark for building open source projects, thereby widening its addressable market.
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From an investment perspective, although Ethereum price edged lower on Tuesday and Wednesday, the trading volume increased by more than 10% over the last 24 hours indicating a significant rise in crypto investors interest.
Therefore, the pullback seems to be associated with some investors taking profits rather than a shift in the market sentiment from bullish to bearish.
Technically, Ethereum appears to be trading within an ascending channel formation in the intraday chart. As a result, the ETH/USD has rallied to the overbought conditions of the 14-day RSI, sparking the recent pullback.
However, with the price yet to retest the trendline resistance, investors could target potential rebound profits at about $5,026, or higher at $5,340. On the other hand, $4,487 and $4,161 are crucial support zones.
Not too late to buy?
In summary, although the ETH/USD has spiked to trade at new all-time highs, the bulls seem to have total control. Therefore, the recent pullback could be an opportunity to buy.
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