Chart of the day - Ethereum (06.03.2024)

The recent days have been very volatile in the cryptocurrency market. Yesterday, Bitcoin broke its historic all-time high (ATH), momentarily surpassing the $69,000 level. However, shortly after this, there were cascading declines due to the over-leveraged state of the market. Bitcoin briefly fell below $60,000, and Ethereum approached $3,200. Nevertheless, as quickly as the declines happened, they ended just as swiftly. Today, we are observing a strong rebound. The BTC price has returned above $66,000, and ETH is gaining to the level of $3,770.

Looking at the historical behavior of capital in the market, Bitcoin breaking its previous ATH initiates the start of capital flow to Ethereum, and then to smaller projects. We are observing such a movement in recent days. Ethereum has two very important events ahead. One of them is the Dencun update, followed by the approaching final deadlines for ETF applications. On this wave, it's possible that the bulls might strive to break through the $4,000 level. In such a scenario, the ETH price would still be nearly 20% below its ATH.

Source: xStation 5