The minor two-day cryptocurrency market correction has seemingly concluded as prices across the board are marching upwards once again. Ethereum, which has been on fire this year, is leading the pack smashing through resistance and hitting a seven-month high.
Cryptocurrency markets have expanded by almost $20 billion over the past 24 hours as total capitalization closes in on $300 billion. This is the highest it has been since mid-August, six months ago.
Ethereum Sets the Pace
The short-lived correction took Ethereum prices down to around $217, but they did not stay there long. Two massive hourly candles saw the world’s second-largest digital asset reclaim its previous high of $230 before pushing for a new one.
The second surge during early eastern trading hours carried ETH to just shy of $250.
The last time Ethereum was at this level was when it was crashing in mid-July of 2019. The half-year downtrend plunged the asset to around $120 in mid-December. Since then ETH prices have doubled.
The next resistance level up from here is around $270, and above that, the path to $300 looks clear.
Investors are talking of a ‘golden cross’ which is when a fast-moving average crosses above a slower one. This term usually pertains to the 50 and 200-day MAs. This has already occurred for Ethereum last week and has been confirmed by further bullish momentum.
If cryptocurrency markets were to correct even further, which is looking unlikely in the short term, Ethereum prices could return to support around $190.
A recent report has suggested that U.S. banking giant JP Morgan Chase is in talks to merge its blockchain unit Quorum with Ethereum solutions provider ConsenSys.
Quorum was originally constructed on the Ethereum blockchain so the tie-up is the next logical step for the expansion of the bank’s blockchain division.
The report added that the deal is likely to be formally announced within the next six months, but financial terms are still unclear. One highly probable outcome, should the merger proceed, is that the bank will start investing in the Ethereum ecosystem.
This will be hugely bullish for ETH prices, already up 85 percent this year, cementing its position as the industry standard for smart contracts and decentralized applications.