- Ethereum regained the $2,000 stage
- The market has rallied in 2023 after bouncing from support seen in the $1,200 space
- Despite breaking the decrease highs sequence, a pullback could be in the playing cards
The bullish momentum in the cryptocurrency market that began in 2023 continued in the second quarter of the yr. Ethereum is certainly one of the most important beneficiaries, because it recovered the $2,000 stage.
Ethereum’s value nearly doubled from the 2022 lows. Then, again in the final days of 2022, Ethereum traded at $1,200, a stage that proved to supply sturdy support. No one hoped for such a fast rise, however in buying and selling, particularly in crypto buying and selling, issues can flip round rapidly.
Now that Ethereum trades above the $2,000 stage, the massive query is – what occurs subsequent? The shut above $2,000 is important from a bullish momentum perspective. However, if not sustained by additional positive factors, we would see a pullback in the brief to medium time period.
Why did cryptocurrencies rally?
It has to do with the weaker US greenback efficiency over the identical interval. Sure sufficient, the greenback topped a bit earlier, in October of final yr, whereas the cryptocurrencies continued declining and bottomed a few months later.
But they did meet up with the greenback’s transfer. As a comparability, again in October 2022, the EUR/USD traded properly under parity, round 0.96. However, it closed the yr means increased, round 1.06.
In the meantime, the EUR/USD rally pale, however it was the cryptocurrency market’s flip to rally. Therefore, one would possibly say that the two are related, and the key to the rally was the weak US greenback.
Yesterday, Fed’s Bullard stated that it favors extra price hikes. If that’s the case, the greenback would possibly strengthen in the brief and medium time period, that means a decrease EUR/USD. Following the identical logic as above, cryptocurrencies would possibly quit a few of their 2023 positive factors.
Therefore, Ethereum might quit the $2,000 stage. If that’s the case, consumers are anticipated in the $1,600 space.
