Ethereum price has been experiencing a significant surge recently, reaching its highest level since May 2023. This increase in price can be attributed to several factors, including expectations of further interest rate hikes by global central banks in the near future. Investors are bracing themselves for these potential hikes and are turning to Ethereum as a viable investment option.
In the past week alone, Ethereum has seen a jump of over 3% in its price. Year to date, the altcoin has surged by an impressive 64%. As of the time of writing, Ethereum is trading at $1,953.70. This upward momentum can be seen across the entire cryptocurrency market, with the global crypto market cap reaching $1.21 trillion and the total crypto market volume increasing by 14.60% in the last day, according to Coinmarketcap.
There has been a notable shift in sentiment within the crypto market, as indicated by the crypto fear and greed index. This index measures the current mood within the market, and it has recently improved to a greed level of 61. This suggests that investors are increasingly bullish and optimistic about the future performance of cryptocurrencies, including Ethereum.
One of the significant drivers behind this increased bullish sentiment is the growing interest in the cryptocurrency market by prominent institutions and figures. In June, bigwigs such as Fidelity, BlackRock, Cathie Wood, and Charles Schwab made headlines with their involvement in the crypto market. For example, Charles Schwab, Citadel Securities, and Fidelity collaborated to launch a crypto exchange platform called EDX Markets. This platform listed four digital assets, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
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BlackRock, another major player in traditional finance, also made significant moves in the crypto space. The company filed an application for a Bitcoin EFT with the US Securities and Exchange Commission (SEC), which generated excitement and caused crypto prices to rise. However, it was reported that the filings for Bitcoin exchange-traded funds were not sufficiently comprehensive. As a result, BlackRock submitted a fresh application for a Bitcoin spot market ETF, which, if approved, will be the first of its kind.
While these developments have positively impacted the price of Ethereum and other cryptocurrencies, the focus has now shifted to global central banks. Federal Reserve Chair Jerome Powell recently announced expectations of multiple interest rate hikes for the rest of the year. Other central banks, including the Bank of Japan, the European Central Bank, and the Bank of England, have also signaled their support for further rate hikes. Investors are closely watching these central banks’ decisions as they anticipate their potential impact on the cryptocurrency market.
When it comes to Ethereum’s price outlook, the altcoin has been trading above the crucial level of $1,920 for the past few days. Bulls have been struggling to push the price past the resistant level of $2,000. However, Ethereum has managed to move above the 50-day and 200-day exponential moving averages, demonstrating its strength amidst macroeconomic headwinds. The Relative Strength Index (RSI) also indicates positive momentum, moving above the neutral zone.
Taking these factors into account, it is likely that Ethereum’s price will continue to rise as buyers target the next resistance level at $2,000. On the other hand, a drop below the 50-day EMA at $1,920 could push the price lower, with potential support at $1,845.
Overall, the current market conditions and investor sentiment point towards a positive outlook for Ethereum’s price. As global central banks consider further interest rate hikes, the cryptocurrency market is attracting more attention from traditional financial institutions. This increased institutional involvement, along with a general bullish sentiment in the market, is driving the price of Ethereum and other cryptocurrencies higher. Investors will be eagerly watching for further developments and announcements that may impact the future performance of Ethereum.
