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The total cryptocurrency market capitalization has increased by roughly $49 billion since the start of Monday’s trading session, helping Bitcoin and Ethereum post significant gains.
Bitcoin and Ethereum on the Rise
Bitcoin and Ethereum have kicked off the week in the green, signaling the beginning of a new uptrend.
The top cryptocurrency has gained over 1,000 points in market value following the opening of Monday’s trading session. The sudden spike in upward pressure surprised many cryptocurrency enthusiasts given the prevailing macroeconomic uncertainty. Still, Bitcoin appears to have breached a crucial resistance area that could allow it to advance further.
From a technical perspective, BTC bounced off the middle trendline of a parallel channel that had developed on its daily chart. The technical formation suggests that it could now march toward the upper trendline at around $25,700. Bitcoin must continue trading above the $23,300 support level to achieve its upside potential.
On-chain data add credence to the technical outlook as IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model shows that Bitcoin has developed a significant support floor. Roughly 1.4 million addresses purchased over 1 million BTC between $22,650 and $23,325. The significant amount of interest around this level could help contain any spike in profit-taking, potentially allowing prices to rebound.
It is worth noting that the IOMAP shows little to no significant resistance ahead. The most considerable supply barrier is $26,670, where 63,530 addresses have previously purchased over 181,270 BTC.
Ethereum has also gained significant bullish momentum today. The increasing buying pressure has helped ETH’s price surge by nearly 7%, hitting a high of $1,800 at press time. As speculation mounts around the blockchain’s long-awaited “Merge” upgrade, it appears that ETH has more room to ascend.
The second-largest cryptocurrency by market cap has broken out of a symmetrical triangle that had developed on its four-hour chart. The height of the pattern’s Y-axis suggests that Ethereum could now enter a 22.5% uptrend. Further bullish momentum could help ETH validate the optimistic outlook and reach $2,130.
On-chain activity also indicates a spike in interest for Ethereum. The number of new daily addresses on the network appears to be increasing, creating a series of higher highs and higher lows. The uptrend suggests that sidelined investors have been accumulating ETH around the current price levels.
Network growth is often considered one of the most accurate price predictors for cryptocurrencies. Generally, a steady increase in the number of new addresses created on a given blockchain leads to increasing prices over time.
Despite the improving technical and fundamental conditions, ETH must remain trading above $1,700 to continue trending upward. If it drops below the crucial level, it could face a sell-off that invalidates the bullish thesis and triggers a correction to $1,600 or even $1,450.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.