The Ethereum price has broken through the key level of $18,000, reaching a two-week high on Wednesday. This surge is a response to the growing support for cryptocurrencies from financial institutions. At the time of writing, Ethereum is trading at $1,813.88, representing a 1.22% increase. The market cap of Ethereum has risen by nearly 5% in the past day, with trading volume increasing by 53%.
Over the past week, Ethereum has experienced a strong recovery, gaining over 4% in value. Year to date, it has seen an impressive surge of 51.51%. This recent rally aligns with the broader recovery in the crypto market. Coinmarketcap data indicates that the global crypto market cap has increased by 6% in the last 24 hours, reaching $1.14 trillion. The total crypto market volume has also risen by 67.70% over the same period.
Positive sentiment in the crypto market has been on the rise since last week when BlackRock, the world’s largest asset manager, filed for the first-ever spot Bitcoin ETF in the United States. This move comes shortly after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against major crypto exchanges Binance and Coinbase, accusing them of selling unregistered securities. The timing of BlackRock’s application has sparked speculation among investors, especially considering Coinbase as its crypto custody partner.
In addition to BlackRock’s involvement, a new crypto exchange backed by financial giants such as Charles Schwab, Citadel Securities, and Fidelity Digital Assets has shown support for cryptocurrencies. The exchange announced that it has been trading Bitcoin and Ether for several weeks. The public display of commitment from these prominent financial institutions has fueled optimism among investors about the future of the crypto sector.
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As a result of this positive momentum, the Bitcoin price has also surpassed the $28,000 level for the first time since early May. Many altcoins, including Ethereum, are closely following this upward trend. Investors remain optimistic, injecting liquidity into the crypto market.
Analyzing the daily chart, it is evident that Ethereum has been on an upward trajectory in recent days, breaking above the significant bullish support level of $18,000. The altcoin has also risen above the 50-day and 200-day exponential moving averages. The Relative Strength Index (RSI) has moved above the signal line into the neutral zone, and the Moving Average Convergence Divergence indicator has entered the bullish zone. However, Ethereum has struggled to break through the 50-day and 100-day simple moving averages.
Considering these factors, there is a high probability that the Ethereum price will continue its upward movement, with buyers targeting the next major resistance level at $1,920. If Ethereum manages to surpass this crucial resistance, it will provide enough momentum for the bulls to push the price even higher, potentially reaching $2,000. On the other hand, if the price falls below the critical support level of $1,769.05, the bullish thesis will be invalidated.
In conclusion, the Ethereum price has reached a two-week high, breaking through the $18,000 level. This increase is a response to the growing support for cryptocurrencies from financial institutions such as BlackRock and Fidelity. The broader market sentiment is positive, with Bitcoin also experiencing significant gains. Technical analysis suggests that Ethereum has strong upward momentum, with the potential to reach higher resistance levels. However, it remains important to monitor the key support and resistance levels to determine the future direction of Ethereum’s price.
