Ethereum resumed its sideways movement on Friday after briefly crashing due to Israel's attack on Iran. The move presented a buying opportunity for a whale, who quickly profited from it. This also comes when Ethereum's buyback yield exceeds that of several S&P 500 firms.
Read more: Ethereum shows firm support at key level as its correlation with US indices increase
Ethereum wasn't left out, as the entire crypto market took a hit on Friday following Israel's strike in retaliation to Iran's attack on April 13. Here are your key market movers:
Also read: Ethereum moves sideways as Q1 report indicates token burns are making it deflationary
ETH attempted to break the $2,852 support on Friday after Israel attacked Iran. However, prices have quickly bounced back, and ETH appears to be continuing its consolidation. The calm may be due to investors exercising caution as they await how the market responds to Bitcoin's fourth halving, which is a few hours away.
Read more: Ethereum declines as crypto market crash increases bearish sentiment
Considering that many analysts have predicted that Bitcoin halving is already priced in, ETH may experience light volatility in the next few hours.
ETH/USDT 4-hour chart
But in the coming weeks, it won't go outside the range of $2,852 and $3,406 formed in recent price movements, except if major external factors prevail on its price. In the long term, ETH could test the resistance of $3,730. An unlikely approval of spot ETH ETFs by the Securities & Exchange Commission (SEC) would send it past the $4,000 key level to a new all-time high.
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.