The price of Ethereum is gaining momentum. According to CoinGecko, the value of the second-largest cryptocurrency is currently trading at $1,564.66, up 12% over the previous day. For more than a month, the coin has been stuck in a range between $1,405 and $1,240.
Although it’s too soon to say whether ETH has permanently left that trading range. It is the first time the price of the coin has reached these levels since the historic Merge on September 15.
The rebound in ETH prices is likely a result of general market conditions. For the third straight day, the S&P 500, Nasdaq, and Dow Jones all saw gains of 1.32%, 1.86%, and 0.86%, respectively. For the majority of the year, the cryptocurrency market has closely tracked the stock market.
However, it has proven to be even more resilient in the past month, as all three of the major U.S. equity indices hit new lows in the middle of October. Still, Bitcoin and Ethereum resolutely stayed within their trading ranges.
Factors That Lead Crypto Market Upward
Most significantly, it looks like the US dollar is currently consolidating. The DXY is now trading at 110.9 points and may be beginning to reverse after reaching a high of 114.6 points on September 27.
The sustained rise of the U.S. dollar throughout the year has primarily been detrimental to equities, cryptocurrencies, and other fiat currencies including the euro, British pound, and Japanese yen.
Related Reading | ASIC Takes Action Against BPS Financial For Alleged Unlicensed Crypto Trading
Moreover, the Federal Reserve has hinted that it may soon lower the pace of interest rate increases, so it may now be slowing down. However, there are other factors driving Ethereum’s development as well.
The previous few hours have also seen a sharp increase in open interest for ETH. Delphi Digital, a cryptocurrency research platform, reports that in less than an hour, nearly $500 million worth of ETH perpetual futures contracts were purchased on Coinbase. This purchase quickly caused prices to spike from $1,350 to $1,380.
Comments (No)