After the slump seen in the crypto market last week, altcoins have been waking up again after dropping to temporary lows. Despite Bitcoin not being able to sustain at a level above $55,000 at the time of writing, major altcoins, including Ethereum (ETH), Uniswap (UNI), and Polygon (MATIC), made new record highs in the past 24 hours.
The price action of these three altcoins definitely outperformed Bitcoin and the rest of the crypto market. What can we expect to happen after the record high?
Ethereum price surges to record high at above $2,700
Ethereum has gained roughly 3% in the past 24 hours, reaching a high of $2,709 on April 28. With the continuous growth in popularity in the decentralized finance (DeFi) and non-fungible token (NFT) markets, ETH price has managed to climb significantly this year.
On top of growing adoption of the Ethereum network, ETH daily active addresses have also seen a sharp increase prior to the cryptocurrency reaching a new all-time high.
Lower gas fees seen earlier this week also helped with the recent surge, as users were able to move their holdings without heavy costs. Ethereum will continue to work towards ETH 2.0 where high gas fees issues will be addressed, and less new ETH will be created, generating a supply and demand shock.
However, it would be critical for Ethereum to hold previous resistance levels as support for further upside potential. Looking at critical support and resistance levels could be useful for setting trading strategies and to look out for a change in the price action.
If ETH fails to hold support at the $2,523 area, the next critical support for Ethereum is at $2,128. You can set stop-loss orders ahead of time on CoinPanel to manage risks, especially when the market trades 24/7.
Polygon (MATIC) price almost reached $0.90
Polygon has gained popularity with its Layer 2 solution that aims to solve scalability issues seen in Ethereum. MATIC price has been able to set new highs, recently recording an all-time high of $0.87. The altcoin has surged by over 118% in the past month.
MATIC’s daily active addresses reached a new high as well, with its network growth witnessing a similar long-term rise. This can be explained by the new partnerships Polygon was able to rake in, increasing the adoption of its network.
MATIC’s mean coin age metric shows that holders have been accumulating the altcoin for a while. Polygon has seen sustained periods of consolidation — however, it could also mean that a correction could occur.
Despite network activity growth, MATIC whales — addresses with over 100,000 tokens or more have been slowly declining. This means that whales have been selling the altcoin. Daily active deposits of the MATIC cryptocurrency also tells the story that holders have been depositing the altcoin to exchanges to take profit. The layer 2 solution cryptocurrency could see more consolidation before gaining strength.
During this time, it would be wise to have a strong strategy set ahead, with stop-losses predetermined and ready to go if the market moves abruptly in the opposite direction.
If you are trading on an exchange, you have probably encountered an issue — when you set a stop-loss, your balance is blocked, and you cannot set orders using your capital. CoinPanel, an all-in-one trading platform, tackles this issue by enabling you to set take-profit and stop-losses at the same time, without having your balance blocked.
Check out CoinPanel’s trading platform — which allows you to directly connect your exchange account and start trading without being limited by the functions available to you on exchanges.