Ethereum (ETH) breaks above the $1,300 resistance following a broad rally in the cryptocurrency sphere. Risk on mood today in global markets following the sharp selloff in equities, bonds, crypto and gold attracted some investors for bottom fishing.
Ethereum mirrored the plunge in cryptocurrencies and stock markets despite the much anticipated Ethereum’s Merge upgrade which was completed successfully on September 15. ETH’s price on that day was above $1,500.
Positive momentum in cryptocurrencies today is supported by news that FTX crypto exchange acquired in an auction Voyager Digital the bankrupt cryptocurrency lender in a deal valued up to $1.42 billion dollars. The deal is subject to approval by the New York Bankruptcy Court.
Bitcoin price breached today the $20,000 mark with gains of more than 5%. The troubled XRP is also trading higher adding 1.31% to 0.4745 boosted by optimism that the SEC case against Ripple (parent of XRP) might soon end. Litecoin (LTC) is also 1.95% higher at 54.49. The total market capitalization of the top cryptocurrencies has reached $960 billion adding more than 50 billion today. The ethereum capitalization stands today at $169 billion.
Meanwhile, the futures on Wall Street are also trading higher, S&P 500 is 0.86% higher at 3,684, Dow Jones is 0.62% higher at 29,441 and Nasdaq is adding 0.98% higher at 11,352.
Ethereum Technical Analysis
Ethereum today is trading 4.08% higher at $1,376 as the support of around $1275 has proved very strong for one more time. The ETH recovery in the summer due to the upcoming merge event was fully erased by the global rising interest rates environment and fear of a global recession.
While the trend remains bearish, recent price action suggests that ethereum could gain some momentum. The price cleared the 1300 resistance and the RSI indicator slope has turned upwards. Initial resistance for the number two cryptocurrency stands at $1,407 the top from September 21. The next strong resistance will be met at $1,480 the 50-day moving average. A convincing break above will cancel the recent bearish trend and might open the way for a test of the 100-day moving average of around $1,600.
A failure to reach the above levels might lead to a correction. First support is at the daily low at $1,332, while more buying interest might emerge at the $1,275 area. A break below might force the price towards the two-month lows at $1,225
Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently, Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).