Ethereum Price Rises Above $3500
While traditional financial markets experience a lull due to Thanksgiving in the U.S., the bullish momentum in the cryptocurrency market continues to keep traders engaged.
As seen on the ETH/USD chart:
→ Ethereum's price has broken through the critical $3500 level, which acted as resistance during the summer (indicated by an arrow).
→ Additionally, the strength of demand is underscored by the fact that the price has surpassed the upper boundary of an ascending channel (marked in blue) that began in August.
Interestingly:
→ On October 25, we reported that the ETH/USD rate had fallen to a 44-month low.
→ Today, Bitcoin's performance appears weaker relative to Ethereum.
What does this indicate?
On one hand, investors might be shifting their focus from Bitcoin, which has stalled near the psychological $100,000 mark, to Ethereum, which may appear undervalued compared to the leading cryptocurrency.
On the other hand, the current upward momentum breaking above $3600 could turn into a bull trap.
Failure of the ETH/USD rate to consolidate at its recent highs could make the second scenario more likely.