Ethereum is rising faster than Bitcoin again, with the token gaining 6% and trading at $ 1,460. The king of cryptocurrencies gains less than 2%, but it is possible that in the event of a euphoric opening on Wall Street, the main cryptocurrency will return to levels at $ 22,000, and Ethereum will try to break the barrier at $ 1,500 again.
Investment bank Barclays has recently pledged to support the Copper platform, which intends to raise $ 500 million to start investing in a declining cryptocurrency market. This confirms that a large part of financial institutions still see the potential for growth in the cryptocurrency sector, adjusting their strategy to risk accordingly. It is worth emphasizing that the subjectively risk may be perceived as ‘more and more attractive’ as the declines continue.
According to Glassnode data, Bitcoin has been almost completely wiped out of short-term investors, which may indicate a new cycle is emerging. As was the case in the past, tokens sold by short-term holders found their way into the hands of the so-called HODLers not interested in selling Bitcoin, which causes the supply of cryptocurrencies to decrease in the wider horizon.
Today, the cryptocurrency Polygon is growing almost 9%, the rally of which was caused by the zkEVM update, which the creator Michajlo Bjelic called the ‘Holy Grail of blockchain infrastructure’. Cryptocurrency builds the so-called the second layer (Layer 2) of the Ethereum network. The update is to significantly help the Ethereum blockchain by increasing its scalability and reducing fees and accelerating transactions in the Polygon network.
At the same time, the update enables the processing of smart contracts, the so-called ‘smart contracts’ in the same way that they are validated under Ethereum. Polygon has recently made a deal with the entertainment giant Walt Disney. Polygon will join five technology companies focused on researching the development potential of artificial intelligence (AI), VR (virtual reality) and AR (augmented reality) trends and NFT tokens.
The URPD chart shows record high demand around $ 20,000 and increased interest in BTC accumulation around $ 30,000 and $ 40,000. The vast majority of tokens purchased from the beginning of 2022 seem to be in the hands of holders who are not willing to sell, which supports the scenario of shrinking supply.
Technically, the largest cryptocurrency has managed to surpass the psychological barrier of $ 21,000, and a recovery movement is underway. We can now consider the 100-period exponential moving average (purple curve) to be the closest support zone.
When analyzing the Ethereum chart technically, we also see a rebound from the psychological barrier of $ 1,400, which was further strengthened by the constraint of the former downward channel (red dotted line).
Polygon prices have rebounded from the zone of the 38.2% retracement of the Fibo and are currently testing the 50-period exponential moving average (blue curve), which is further boosted by the retracement of the 23.6% Fibo. Should the bulls manage to break above these indications, another noteworthy limitation will be the downtrend limit marked with a red dotted line.