ETH on The Up
Alongside the sizeable rally we’re seeing in Bitcoin currently, Ethereum is also making its way higher. The second largest-traded crypto coin has broken out this week, now trading back at levels last seen in early 2022, up around 35% from the YTD lows. The improved crypto sentiment on the back of the SEC Bitcoin ETF approvals seen earlier this year has been a major boost for ETH. With Bitcoin ETFs now live, traders project similar ETH ETFs to come in the near future, driving demand for the coin.
Paypal Owner’s Bet
It was revealed this week that Paypal’s billionaire co-founder Peter Thiel’s Founder’s Fund made a $200 million bet on Bitcoin and Ethereum late last year. Additionally, industry data has reflected a recent uptick in Bitcoin whales (account with +100- BTC) turning bullish. In all, the news has helped bolster bullish sentiment among crypto traders, driving ETH higher alongside BTC.
Bullish Outlook
Looking ahead, the near-term outlook is favourable for crypto assets with the Fed widely expected to start cutting rates this year. The prospect of looser financial conditions has been driving stocks higher recently, creating a beneficial risk-on environment which is also helping fuel crypto gains.
Technical Views
ETH
The rally in ETH has seen the market breaking out above the 2633 level. Price is now testing the bull channel highs ahead of the 2949 level resistance. While stalling for now, the focus remains on further upside and a breakout above this resistance in line with bullish momentum readings. In the Signal Centre today we have a reading set below market at 2615, suggesting a preference to buy and dips in the current bull move.
.png)
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% and 70% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.