Ether hit new all-time highs of $1,929 on February 18 as a brief lull in bitcoin price action allowed for further upside.
Data from price trackers including CoinMarketCap and TradingView showed ETH/USD ending a period of sideways trading on Thursday to deliver 4% daily gains.
Ether price eyes $2,000
At the same time, BTC/USD plateaued after reaching its own record of $52,550 overnight to trade around $500 lower at press time.
The latest push higher brings ether closer than ever to the significant psychological barrier at $2,000, something which if broken could immediately spur a surge to $2,200.
“…The critical area becomes $1,820-$1,840,” popular trader Michaël van de Poppe added about the prospect of a downside move appearing.
“If that is lost and we lose that during the day, we get a very ugly daily candle and we are probably topping out for now and then we have another fakeout.”
He noted that moves on bitcoin could well influence sentiment on ETH, with a comedown from its new levels apt to spark a chain reaction across altcoins.
Others meanwhile argued that with institutional demand from Grayscale in particular returning, the only way is up. Grayscale had taken a breather in buying for its Ethereum Trust, but returned to top-ups this month.
“Grayscale purchased over 20k Ethereum today. $ETH to 3k is programmed,” fellow trader Cantering Clark tweeted on Tuesday.
$50,000 readies foundations as support
For bitcoin, a familiar mixture of adoption and well-known naysayers continued an existing narrative as prices stayed above $50,000.
News that the world’s biggest asset manager BlackRock had begun “dabbling” in Bitcoin was music to the ears of bulls, who keenly eyed the firm’s $8.7 trillion in assets as a potential source of major investment.
At the same time, economist Nouriel Roubini returned to mainstream media to denounce Bitcoin, once again comparing it to the Tulip Mania of 17th century Holland.
For investment portal Motley Fool, however, it was time to change its mind altogether on bitcoin — after telling its audience to stay away in 2013, this week brought confirmation of a $5 million allocation for its corporate treasury.
The irony did not go unnoticed by bitcoin figures, while others questioned what they viewed as the modest size of the investment.
“While Bitcoin may very well continue to be volatile in the short term, we think it has 10x potential from today’s levels over the long term as part of a diversified portfolio,” a dedicated article reads.
“We plan to hold this Bitcoin investment for many years.”
“Currently, we’re breaking up, so the current support level to hold is this $51,000 zone,” Van de Poppe added in brief daily BTC price coverage.
“If that holds, I’m assuming we’re going to see continuation towards $53,000. If that is lost, there’s not much in between, so a drop towards… $49,000-$48,500 is likely to happen.”