(DAILY NOTION): ETH/USD Records New All-Time High, Gain of 21% in 24 Hours, Next Mover: Progress of Yellen's Nomination as U.S. Treasury Secretary

Source: Yahoo Finance

ETH/USD had a stellar start to the week when it rose to an all-time high above $1,470, marking a 21% gain in a span of 24 hours. This new record was hit on the seventh anniversary of Ethereum’s launch.

Rahul Pagidiapti, the Chief Executive Officer of ZebPay, India’s oldest cryptocurrency exchange, believes that investors are currently adding Ethereum into their portfolio while Bitcoin consolidates. Lark Davis, another cryptocurrency analyst echoes a similar sentiment and opines that the price of ETH/USD could double over the next fortnight.

At present time, the ETH/USD bulls are taking a breather, as the price has since dipped from the all-time high to $1,360.18. As indicated by the Moving Average Convergence Divergence (MACD), there seems to be a struggle between the bulls and the bears to take the rein. The current trend points towards a bullish reversal. The Relative Strength Index (RSI) which stands at 60, leans towards an overbought condition.

Analyst Lorenzo Stroe from FX Street reports that the Eth2 deposit contracts continue to increase. These are Ethereum coins which are locked and cannot be sold. There are presently 2.83 million of ETH worth over $4 billion. However, he believes that a short-term pullback is on the cards as indicated by a sell signal on the TD Sequential indicator.

As the spotlight now shines on ETH/USD, it could lead to a sense of FOMO, or Fear of Missing Out, in the market, similar to what Bitcoin experienced when it surged. In terms of the market, as Janet Yellen moves towards officially becoming the U.S. Treasury Secretary, the market is closely watching if the tightening of regulations would follow suit, given Yellen’s cautious approach when it comes to cryptocurrencies.

However, Gary Gensler and Chris Brummer, who have been nominated as chairpeople the U.S. Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) have extensive knowledge on cryptocurrencies and blockchain knowledge. Perhaps this would provide a healthy balance when it comes to regulations. 

As a new shining star seem to be rising in the cryptocurrency market, would it soon surpass everyone’s favourite cryptocurrency, Bitcoin? Let’s keep watching this space.

ETH/USD (as of Jan 26, 2021, 10 a.m., GMT +8) - $1,360.18