ETH Forecast & DOGE's Mission to the Moon!
Hello and welcome, everyone, and happy Monday. This is Martin with CryptoGains. We're beginning today's discussion talking about Ethereum, which is reaching new all-time highs.
Now, first of all, we're beginning our discussion by looking at the implied volatility spread between Ethereum and Bitcoin. It's getting higher and higher, implying more interest in trading derivatives based on Ethereum compared to Bitcoin derivatives. Additionally, interest over time is now converging, where searches for Ethereum are almost as high as searches for Bitcoin. This suggests that the overall interest of market participants in Ethereum is about to explode by equaling that of Bitcoin, which, of course, for Ethereum standards, is very, very high.
And, finally, we can also see that the Ethereum active addresses are approaching the all-time highs reached towards the crypto hype at the end of 2017, beginning of 2018, suggesting that interest in Ethereum is very, very high at the moment.
Also, there is this insightful article discussing the fact that we're witnessing supply depletion due to massive exchange withdrawals. And, of course, whenever we have supply depletion for market forces to equalise, that's going to drive prices higher.
Moreover, the supply of Ethereum in smart contracts versus bonds on exchanges is increasing, which indicates that Ethereum is being put to its original use rather than just used for speculation, giving us confidence in the sustainability of that rally. Moreover, what we can see is that, throughout the year, there have been net outflows of Ethereum from exchanges, suggesting that people are taking it away from the exchange into cold storage for longer-term holding. Of course, we can see some spikes where Ethereum is going through exchanges. This is signified in green. But the majority and the net balance, you can see there, 10 withdrawals of over 200,000 Ethereum out of exchanges, suggesting people are going to hold it for the long term.
And, finally, we can also see the net transfer volume from/to exchanges is growing significantly below zero, indicating once again that very same behaviour, withdrawing Ethereum into cold storage. So, major price corrections don't seem likely at the moment. They're possible; they just don't seem likely.
An interesting development for Dogecoin. Finally, it seems that Elon Musk is really going to put Dogecoin on the Moon, literally. It's been accepted for payment by SpaceX, and it's going to travel to the Moon with the latest mission. And, finally, Tesla is releasing its sixth iteration after the Florence upgrade, giving more functionality to the cryptocurrency and driving prices higher.
So let's take a look at the technical charts and see how you can trade on these insights, beginning with Bitcoin versus Tether. $58,000 is strong support and the pivot point. Above that level, buying Bitcoin, with targets at $59,000 and $59,500. Conversely, below $58,000, selling Bitcoin, and the nearest support areas are at $57,200 and $56,400.
Next, we're moving to Ethereum. Looking at the Ethereum chart, above $4100, we have very good support and a good opportunity to buy Ethereum, with the first target at $4150, and then charging into new all-time highs, with the nearest reasonable target at $4200. Conversely, if we break below $4100, we could see further declines to just about $4058, $4050. And, then, if that level is broken, we can see Ethereum declining and correcting to as low as $3980.
And, now, let's take a look at Binance Coin, which is also performing very strongly. The pivot point for buy Binance Coin is $677.50. And above that level, we could be buying Binance Coin, with targets at $689, and then afterwards, to a new all-time high at $700. Conversely, below $677.50, we could see declines, with the nearest support at $672 and then $668 and $657.
And now, let's take a look at Dogecoin. Dogecoin has robust support at $0.52. Above that level, we could buy Dogecoin, with targets at $0.555 and $0.59. Conversely, if we break below $0.52, we could see declines to $0.505 and $0.48. This is based on horizontal support and resistance lines, which are even more pronounced on the five-minute chart, and it's what I've been using for trading lately, as is it tends to be one of the most reliable ways of trading cryptos.
And, finally, let's take a look at Tezos. For Tezos, the pivot point is $6.96. Above that level, buying Tezos, with targets at $7.25, then, subsequently, at $7.40. Conversely, if we break below $6.96, declines are likely to $6.80 on the short side and $6.70.
Thank you very much for joining me today. Keep learning with the video education section and the CryptoGains market insights subsection. Remember to join the Crypto Signals Made Easy channel for lots of articles and insightful trading ideas. Thanks for joining me today, and have a good week.