Large-cap cryptocurrencies had returned in the center of attention since 2019 begun, with Bitcoin, Ether, and Litecoin banking returns of +100% returns. The second largest cryptocurrency in the world – Ether currently holds $26.5 billion in market cap and a price per token estimated at $250.5 by the industry website coinmarketcap.com
Important platform updates
At the end of February, the Ethereum platform had gone through its sixth and seventh major updates, implemented as “hard forks”, promising to provide new and improved features. Labeled as Constantinople and St. Petersburg, both affected the processing speed of the blockchain, the efficiency in scaling solution, the optimization of large-scale code and other important aspects.
Although the EIP (Ethereum Improvement Protocol) 1234 reduced the block reward from 3 ETH to 2 ETH, Ether mining had not been affected and since then, the price of the cryptocurrency had gone through the roof, reviving enthusiasm after a depressing bear market that lasted throughout the entire 2018.
Price action points for future gains
Ether trading continues to be among the top priorities for market participants, as the price action performance for 2019 is showing. With Ether pairs available for trading at forex-com, TDS Capital cryptocurrencies, as well as other important brokerage companies, the price had been going up substantially, supported by strong buying volumes.
On January 1st, the Ether price was trading at $129 on the Kraken exchange and by May 16th it reached a high at $280, which is means more than 100% rise in value.
As it can be easily noticed from our chart, Ether continues to edge higher in a nice parabolic structure, a powerful bullish price action model that suggests buyers are buying each time on the dip, supporting the bull run.
For the first time since April 2018, the price of Ether had broken above the daily 200 moving average on April 2nd this year, communicating the market entered a bullish territory. Since then, the price action continued to float above the moving average and if the parabolic structure will continue to extend higher, we believe there could be room for more gains towards the $360 key resistance area, where a previous 2018 low is located.
Cryptocurrency investors seem willing to trust large-cap cryptocurrencies, due to their reliability and reputation established across many years. The year 2019 marked the beginning of a divergence in terms of how cryptocurrencies performed, as investors rotated into tokens that have the biggest potential for growth.