As Bitcoin and Ethereum Rebound by 5%,Crypto Market Adds $7 Billion

In the past 24 hours, the cryptocurrency market added $7 billion to its valuation as Bitcoin and Ethereum rebounded by around 5 %.

Bitcoin (BTC) successfully defended a comparatively weak support level at $4,000 with strength and Ethereum (ETH) prevented an additional drop below the $110 level.

However  based on the level of the momentum of major cryptocurrencies throughout the past many days, if the dominant cryptocurrency doesn't cleanly breakout of the $4,000 to $4,200 range, a short-run drop to the mid-$3,000 region still remains a possibility.

Where Bitcoin and Ethereum Go Next?

Bitcoin and Ethereum stay as the only two cryptocurrencies to hold a strong daily trading volume. As of December 1, the daily volume of BTC hovers at around $5.5 billion, while that of ETH is stable at $2 billion.

The daily volume of ETH is larger than the daily volume of Ripple (XRP), Bitcoin cash (BCH), and Stellar (XLM) combined.

Several reports released in the past month have shown that the recent sell-off of ETH wasn't vastly suffering from the liquidation of ETH by initial coin providing (ICO) projects.

Chris Burniske, a partner at Placeholder VC, said:

So, in reality just $8 million worth of ICO treasuries’ ETH directly hit exchanges during November 14–30, 2018. Given the info we've, we are assured to mention that ICO projects reacted to the market conditions, rather than dictated them.”

The high daily volume of ETH and BTC recommend that the 2 cryptocurrencies aren't free falling with low sell-pressure, not like the bulk of major cryptocurrencies and small market cap cryptocurrencies within the market.

The danger and the risk of trading low volume cryptocurrencies in a extremely volatile period is that if sell orders hit the market, digital assets with low volume will be the primary to fall by a major margin.

A high daily volume is also what allowed BTC and ETH to recover by over 5 % in the past 24 hours whereas XRP and BCH demonstrated a daily increase in worth in the range of 1.5 % to 3 %.

If BTC and ETH can breakout cleanly higher than major resistance levels, which are calculable to be $4,300 for BTC and $120 for ETH, then the 2 cryptocurrencies could lead the market through a powerful short-run rally.

But  if the two assets continue failing in breaking out of their respective resistance levels, it'll be difficult for the market to determine a major upward price break.

Fundamentals Show Ethereum is in a sensible Position

Joseph Todaro, a managing partner Blocktown Cap, reported  that the Ethereum blockchain network is settling $500 million in daily transaction volume from 600,000 daily transactions, and virtually each rising decentralized application (dApp) or project is being built on Ethereum.

$500 mil daily transaction volume, 600,000 daily transactions, 1/3 reduction in issuance Q1, ETH locked up keeps growing (ie dai), down 92%, completely terrible press, basically anything of interest is made on ETH,” Todaro said.