Ethereum ETH
Ethereum price is under pressure, two days after it reached a multi-year high of $1,427. The ETH price has dropped by more than 5% in the past 24 hours bringing its market cap to more than $148 billion. On the other hand, Cardano price has gained about 0.6%, taking its market value to more than $11.24 billion. This makes ADA the sixth-biggest digital currency in the world.
What happened: There was no specific news on Ethereum and Cardano. Instead, the current weakness of the two currencies is mostly because of profit-taking as investors book their excellent returns. For one, Ethereum price has already risen by more than 70% this year and by more than 1,300% from the lowest level in 2020.
Similarly, the Cardano price has jumped by more than 100% this year alone and by 1,800% from the 2020 low.
For starters, Ethereum is a network that helps people develop decentralised applications, also known as Dapps. These apps use a smart contract technology. Its popularity has made it become the best-known platform for building Decentralised Finance (DeFi) products. On the other hand, Cardano has built a proof-of-stake platform that helps people to transact. Its claim to fame is that it is the first peer-reviewed blockchain product.
On the four-hour chart below, we see that the ADA price reached a high of $0.3080 this week and then pared-back some of those losses. It is now trading at $0.3628, which is slightly above the 25-day and 15-day weighted moving averages. It is also slightly above the ascending trendline. Therefore, amid the consolidation, we believe that the Cardano price will ultimately bounce back as bulls eye $0.40.
On the four-hour chart, we see that the Ethereum price has been on a steady upward trend. It reached a three-year high of $1,427. Still, the price is above the ascending trendline and is at the same level as the 15-day and 25-day WMA.
Therefore, in my view, the current performance is due to profit-taking. Therefore, I believe that the bullish trend is still intact and that ETH will soar to about $1,500 in the near term. Remember, in my past Ethereum price prediction, I wrote that it was forming a bullish cup and handle pattern.
