Ethereum reached record high levels on the same day Bitcoin established its own record peak, pointing to a sustained bullish enthusiasm across the cryptocurrency market.
The second-largest cryptocurrency market cap hit $1,824 ahead of the London opening bell, rising more than 4 percent into the Tuesday session. Its gain coincided with a similar upside move in the Bitcoin market. The flagship cryptocurrency reached $48,200 in the late Asian trading hours.
The gains appeared as a part of a broader upside rally across the cryptocurrency markets after Tesla, the world’s best-selling electric carmaker, revealed its $1.5 billion worth of Bitcoin investments.
The US firm noted in its securities filing that it plans to expand its bitcoin investments in the future, followed by its integration into its services as a mode of payment. Bulls raised its bids for Bitcoin shortly after the reveal, which sent the prices to record highs two days in a row.
Ethereum benefited from Bitcoin’s unprecedented rise, given its positive correlation with the benchmark digital asset. The cryptocurrency was already up 122 percent on a year-to-date timeframe before its latest rally. The gains extended to almost 150 percent on Tuesday.
Explosive Ethereum Move Ahead
Fractal analysts spotted similarities between Bitcoin’s and Ethereum’s explosive moves above their 2017 highs. In retrospect, it took ETH/USD more than two months to retest its previous record high near $1,419 than BTC/USD’s $20,000.
Analysts noted that Ethereum would simply tail the Bitcoin trend in the coming sessions, which might prompt its prices to go further higher.
“Maybe I’m overly bullish on [Ethereum], but for now, both consolidation below ATH and above ATH looks similar for BTC and ETH. When breaking of this small consolidation post ATH, BTC went +70% in 2 weeks.”said Coiner-Yodox, an independent market analyst.
A general market consensus saw Ethereum hitting $2,000 in the short-term.
Ethereum tested a medium-term range resistance with its latest upside move. The token faced a modest sell-off and corrected lower by 2.88 percent.
The price could likely retest its 20-4H exponential moving average (green wave) as support for a rebound. A breakdown would push it towards the blue wave below, the 50-4H simple moving average.
Meanwhile, a breakout above the all-time high level could leave Ethereum in an upside trajectory towards $2,000.