Ethereum Price Analysis: ETH Prints New Record High Amid Heightened HODLing
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Ethereum (ETH) has topped a new record high at $4,643 earlier today as the broader market picks up significant bullish steam.
The second-largest cryptocurrency recorded a daily gain of over 5% and a seven-day jump of 16%, according to CoinMarketCap. At press time, ETH trades solidly at $4,603, a few points below its new all-time high.
Commenting on the new price development, PrimeXBT partner “₿yzantinΞ General” argued that not many tokens [could] outperform Ethereum over the coming months. The prominent analyst tweeted earlier today that:
“$ETH making new all-time highs while funding rates are low meanwhile the rest of the market has very high rates.
I think the most important question right now is ‘what’s going to outperform ETH next couple [of] months?’
And the answer is probably: ‘not much’”
The analyst noted that Bitcoin could reach a new record high first and clear out a significant amount of liquidity from the rest of the industry, adding that this was a common occurrence. However, ₿yzantinΞ General asserted that the momentum currently lies with ETH considering the influx of participants into DeFi and NFTs.
The analyst explained that there are currently two ways in which the market pumps; either BTC or ETH triggers a ripple effect that drags the rest of the market along.
Additionally, Ethereum reserves on crypto exchanges have dropped significantly compared to Bitcoin, indicating that more investors are HODLing ETH and are using it to generate yields in DeFi.
Key Ethereum Levels to Watch — November 3
As mentioned earlier, ETH continues to crush new record highs as the second-largest cryptocurrency peaked near the $4,700 level in the early Asian session today. That said, the cryptocurrency has exhibited some signs of a bullish slowdown as it corrected mildly to the $4,500 support a little while ago. This correction comes as the price enters slightly overheated conditions.
That said, I expect a subsequent correction to the $4,400 area followed by a sideways pattern between $4,400 and $4,500 to ease off the tension.
Meanwhile, my resistance levels are $4,600, $4,700, and $4,800, and my support levels are $4500, $4,380, and $4,200.
Total Market Capitalization: $2.71 trillion
Ethereum Market Capitalization: $534.4 billion
Ethereum Dominance: 19.6%
Market Rank: #2
