Course analysis: Ethereum and DeFi overshadow everything

The past trading week was clearly characterized by the demand for Ethereum (ETH) and Altcoins from the field of decentralized financial products (DeFi). While Bitcoin (BTC) is still in a sideways range, some new projects have made fresh all-time highs.

Any setbacks in the overall market are currently being used for new entrants

Positive-minded investors are purposefully buying some Altcoin projects at previously unimagined heights. Above all, the interest in cryptocurrencies in the DeFi sector seems to continue unabated. This development is currently causing Ethereum (ETH) to outperform the key currency Bitcoin (BTC) significantly. The price development of Chainlink (Link) is also worth mentioning, which has been causing new all-time highs in the past few weeks.

Price analysis based on the value pair ETH / USD on Bitfinex

The price setback mentioned in the last price analysis on January 22nd only lasted for a short time. Starting from the weekly low at USD 1,049, the Ether price rose significantly northwards in the last few days of trading and marked a new all-time high at USD 1,482 this Monday morning. In particular, the increasing interest in the ether ecosystem triggered by the DeFi projects, which use Ethereum as a basic investment, are now also ensuring that prices for the second largest cryptocurrency are clearly rising.

Bullish variant (Ethereum):

After a short consolidation, the Ether course still only knows one direction. Ethereum again defended the EMA20 (red). As long as this sliding support is not lastingly undercut, the signs continue to point to buy for the time being. If there are enough follow-up buyers above USD 1,400 and in particular USD 1,303 to stabilize the ether price above the old all-time high of USD 1,425, the 200 Fibonacci extension at USD 1,591 comes into focus. If this resistance is also successfully overcome, a direct rise to the 261 Fibonacci extension at USD 2,057 should be planned. Profit-taking is again to be expected here.