Ethereum is showing signs of strength this week after the four-hour 50 EMA crossed the 200 EMA to the upside for the first time since July.
The previous cross, which is often dubbed as a golden cross, happened when Ethereum was trading $228, just weeks before an eventual 106% rally to the upside.
At the time of writing Ethereum is trading at $385.45 as it sets its sights on the $407 level of resistance, which was a point of rejection on August 6.
The world’s second largest cryptocurrency by market cap is gearing up towards the highly-anticipated Ethereum 2.0 upgrade, which will see it adopt a proof-of-stake protocol.
This, coupled with the rise in popularity of DeFi, has the potential to drive Ethereum to new yearly highs above $487, although much of it will depend on if Bitcoin can continue to make progress towards its respective yearly high of $12,400.
As stated in Monday’s technical analysis on Coin Rivet, Bitcoin is currently in a period of positive momentum following institutional investment from the likes of Square and MicroStrategy.
However, if both assets face a rejection in this region it would mark a lower high from September 1, which could well be the first signs of a bearish reversal.
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Ethereum was launched by Vitalik Buterin on July 30 2015. He was a researcher and programmer working on Bitcoin Magazine and he initially wrote a whitepaper in 2013 describing Ethereum.
Buterin had proposed that Bitcoin needed a scripting language. He decided to develop a new platform with a more general scripting language when he couldn’t get buy-in to his proposal.
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