Last week Thursday we looked at the “breakout” to the upside in the Ethereum Dominance chart (ETH.D), and it gave us a clue that money was starting to flow into the alts. Today, ETH broke out of the descending resistance trend line on the Daily Chart (which had been in play since the beginning of December).
ETH is the second-largest coin by market cap, and when we see it move, it is usually a sign that money is flowing into the alts. For a reminder, check out our previous article describing the cyclical flow of capital we tend to see in crypto.
ETH hit an all-time high of $4860 on November 10th, 2021. Since then, the price has dropped with the rest of the market, finding support at a low of $2170 on January 25th, 2022.
Currently, the price is above the key support of $3000, with the next resistance areas at $3500, $4000 and $4500. The 0.618 retracement line, between the high of $4860 and the low of $2170, is at $3780. For traders, these are all great zones for taking profits.