On Tuesday, Ethereum made a comeback above $2,100, following a dip to $2,057.65 at the start of the week. This move came as a reaction to the latest gross domestic product (GDP) report from China, which showed a 4.5% growth in Q1 2021, higher than the predicted 4%. At the time of writing, Ethereum was trading near its eleven-month high, reaching an intraday peak of $2,109.58 earlier in the day. This is slightly lower than Sunday’s peak of $2,142, which is the highest point Ethereum has reached since last May.
On the other hand, Bitcoin rebounded from a one-week low on Tuesday, moving away from $29,154.85 to reach a peak of $29,944.78 as the day matured. This rebound came after the cryptocurrency hit its lowest point since April 10, when the price was last below $29,000.
Interestingly, the rebound in both Ethereum and Bitcoin took place as the relative strength index (RSI) jumped from its respective support points. While Ethereum’s RSI is currently at 70.24, with a resistance point at 75.00, Bitcoin’s price strength is at 61.91, with the next visible ceiling at the 65.00 level. Should the RSI reach these levels, it is expected that Bitcoin will be trading above $30,200 and that there is a good chance that Ethereum could move above $2,200.
This positive move in both Ethereum and Bitcoin follows other recent developments in the cryptocurrency market. Earlier this month, Coinbase, a leading cryptocurrency exchange, went public, which was seen as a significant step towards mainstream acceptance of the digital asset. The IPO has been noted as a turning point for decentralised finance, as it reflects the increasing acceptance of digital currencies in the wider financial world. More recently, the asset management firm, Grayscale, which manages the world’s largest Bitcoin trust, has announced the addition of new cryptocurrencies to its investment portfolio.
Overall, the cryptocurrency market has been experiencing a surge in public interest in the past year, primarily due to Bitcoin’s rising value. Ethereum is also increasingly becoming a popular choice for investors, thanks to its technological advancements in smart contracts and dApps. While the cryptocurrency market remains highly volatile with frequent fluctuations in prices, it is clear that Bitcoin and Ethereum are growing in popularity, making them prime investments for the future.
In conclusion, the recent rebound in both Ethereum and Bitcoin is a positive sign for the cryptocurrency market. While investors should remain cautious given the unpredictable nature of the market, the continued growth and interest in digital currencies suggest that they are likely to become an increasingly important asset class in the future. As more institutions and individuals continue to embrace cryptocurrencies, it is expected that these digital assets will become more widely accepted in the mainstream financial world, driving up their value in the long term.
