Is it time to Celebrate Ethereum’s New All-Time High?On February 2nd, Ethereum finally made a new all-time high. Let's find out if the price will skyrocket or pull back!
Volume and Volatility
In recent newsletters, we have showcased the importance of volume. If a breakout is backed by substantial volume, then it will probably succeed and make a big move; if not, then there is a bigger chance that it will flop. Right now, Ethereum's breakout isn't backed by substantial volume, as the volume has stayed the same over the last few days.
Breakouts most often come with increased volatility because they tend to be very aggressive. However, as displayed by the Cryptohopper ATR, this breakout did not bring any additional volatility to the market. On the contrary, volatility actually decreased. The Cryptohopper Average True Range (ATR) is made up of the ATR line displayed in green and an EMA of the ATR shown in blue. When volatility is increasing, the ATR line crosses over its EMA. However, this hasn't happened yet.
Looking Ahead: The volume and volatility can come in after a breakout occurred, and if it does, then we will probably see Ethereum trending higher; however, that doesn't happen often. If volume and volatility do not increase, we will likely see Ethereum retest the breakout.
