Whether Ethereum will go up to USD 370 depends on the next weekly Bitcoin price close

 

On Saturday, the price of Bitcoin (BTC) and Ether (ETH) rose as BTC briefly exceeded $9,700 and Ether peaked at $309 in 2020.

According to Coinmarketcap, Bitcoin’s market capitalization is currently USD 183,698,617,304.

Be sure to read: Bitcoin Forecast: What will be the price of bitcoin in 2020 according to the experts?

The weekend increase was a surprise, as weekends are usually marked by low trading volume and some traders avoid the markets due to the volatility that sometimes accompanies the weekly close.

Technically speaking, Ether’s rapid rise to $309 may also be getting a boost in sentiment from the news that the total value of funds blocked on decentralized financial platforms (DeFi) reached $4 billion today.

 

Currently, DeFi’s three main platforms are Maker, Aave, and Compound, each with $875 million, $639 million, and $616 million blocked in different contracts.

DeFi Pulse data shows that the decentralised financial sector has grown enormously in 2020, given that the blocked value at the beginning of the year was just under $1 billion.

Binance will transfer BUSD through blockchains via the Syscoin-Ethereum bridge

As discussed in a previous market update, Ether was expected to push back towards the USD 317 level if the February 14, 2020 high at USD 288.32 is cleared and Saturday’s rally at USD 309 is just USD 8 away from breaking out of the USD 317 resistance group.

 

After a rally of almost 30% this week, a period of consolidation is expected but if the bulls are renewed or Bitcoin recovers at the weekly close, there is a possibility that the price could reach $317 and the absence of resistance at the top could see the bulls aiming for the 2019 high of $367.

Bitcoin Approaches Key Resistance

As Ether climbed to a new high in 2020, the price of Bitcoin rose to $9,733. Traders are now watching closely to see if the highest positioned digital asset in CoinMarketCap can surpass the $9,900 level, as this would place the price above the long term downward trend line from the 2017 historical high.

Where, oh where has the Bitcoin volatility gone? Part 1
According to Cointelegraph contributor Michael van de Poppe: „It is unlikely that a major parabolic movement will occur so soon, as the price has some unproven levels above it, namely $9,900 and $10,100.

Van de Poppe further explained that:

„The most likely scenario would be a „ladder“ pattern in which the price of Bitcoin rises towards the resistance zone, rejects and then successfully tests the previous resistance zone for support. The price movement is then likely to accelerate upwards once Bitcoin breaks the $10,100 high.

At the time of writing, the Bitcoin price has fallen slightly from the daily high of $9,733, but the daily chart shows that the digital asset is still registering highs and lows and the price remains above the 20-day moving average.

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