(DAILY NOTION): ETH/USD Marks New High, What Lies Ahead Now? Next Mover: U.S. Georgia Senate Runoff, Nonfarm Payroll

Source: Yahoo Finance

ETH/USD had a remarkable start to the year as it broke past $800 in a gloriously steep ascent. The price is currently at $972.71. The ETH/USD bulls were clearly hot on the heels of BTC/USD, which marked an all-time high when it broke past $34,000.

Analyst Anil Pachal of FX Street opines that the ETH/USD bulls seem to be taking a breather after a massive run to the highest price in 35 months. The 61.8% Fibonacci retracement of 2018 which is $906.30 is a key level to watch for bears.

A break past this level would bring $900 into the light, before challenging $830, that is a May 2018 top. Should this level be hit, a dip towards $515 can be expected.

Ethereum co-founder, Vitalik Buterin believes that the bull case for cryptocurrencies is still very much underrated, given a rising interest among the younger generation for cryptocurrencies instead of gold. A similar sentiment was also echoed by Gemini cryptocurrency exchange founder, Cameron Winklevoss, who tweeted the ETH/USD has yet to hit its all-time high.

If the trend marked out by ETH/USD and BTC/USD at the start of 2021 is an indication how the rest of the year would pan out, it seems like cryptocurrencies would finally be getting their share of the limelight.

A next market mover would be the U.S. Georgia Senate runoff elections which would determine which party controls the U.S. Senate. Would President Trump pull one last ‘trump card’ in the last few weeks before he leaves the Oval Office?

The release of nonfarm payroll report this Friday would also be an important data release this week. After the Christmas and New Year celebrations, traders would also be monitoring the progress of new cases against the rollout of the vaccine. By Dec 31, only 2.8 million Americans had been vaccinated. This is 20 million short of the initial target.

All of these factors can potentially lead to a heightened risk off sentiment in the market which would be good news for ETH/USD.

ETH/USD (as of Jan 4, 2021, 9.40 a.m., GMT +8) - $972.71