After days of consolidation, the crypto market finally appears to be in relief. Ethereum leads with significant profits on shorter time frames. Market capitalization second, Ethereum is finally claiming its place as market leader. The last time ETH’s price displayed this price action was in September before “The Merge.”
Ethereum traded at $1.460, with a profit of 10% in the last seven days and 24 hours, respectively. Other cryptocurrencies, which are listed in the top 10, by market capital, trade in green and following Ethereum for the first week in weeks.
Why is Ethereum Rising?
According to the DXY Index, the decline in U.S. Dollar has driven the rebound of the crypto market. Current macroeconomic conditions had caused the currency to reach a 2-decade-high, but it reached 114 before being finally rejected.
In the weeks that have passed, DXY has been trending upwards pushing other assets to support it, even macro assets such as gold, which are considered safe havens. The dollar rally caused particular damage to the currencies of U.S. allies Japan, Britain, and the European Union.
It was under pressure by its allies that the United States ease economic stress. The United Nations (UN), three weeks ago, called upon the U.S. Federal Reserve to change its monetary policy in order to halt the increase of interest rates.
Fed officials have suggested that the Fed might adopt a more aggressive monetary strategy, potentially triggering weakness in DXY Index. As you can see, the currency has broken its bullish trendline. It might now be attempting to test support at 109.
The Ethereum bullish momentum could be extended and the region north of $1500 may be reclaimed by this decline. Research firm Santiment data shows that the bullish momentum extended to other asset classes. This firm can be found via Twitter wrote:
The price of Ethereum reached $1,415 during a #crypto breakout Tuesday. It has been dropping quite significantly today. The key to the next crypto market caps breakout would be its decline or a pause in growth.
Flippening in the Making
Positive market sentiment has been boosted by the upward move. Experts expect bullish momentum will continue, with Bitcoin facing resistance at $1,500 and $20,500 respectively.
Economist Michaël van de Poppe made a bullish prediction for Ethereum. Experts advise traders to not chase the current movement at shorter timeframes.
Bulls who are confident will see price action retest past levels to find lost territory north at $1,500. This could lead to late longs suffering.
van de Poppe for the long term predicted:
This massive move saw Ethereum rise to new heights. A great flip of $1320 inducing continued progress towards $1500. Ethereum will flip Bitcoin this cycle, but now it’s not the time to chase. You need to find healthy corrections in order to make the $1,600 move.