Second-largest crypto by market cap value, Ethereum, seems to have finally found a good rhythm as it continues its upward climb back to the previous high.
On Tuesday close to the start of the Asian market, the native token of the Ethereum blockchain network traded for almost $1,860 on the Coinbase exchange – bringing it very close to the all-time-high of about $2000.
Ethereum’s price suffered a little deflation later, as weak-hand traders nursed anticipation of a possible downward movement. However, the price bounced back shortly after, as institutional traders swoon in to buy the dips. Furthermore, a consideration of current macroeconomic factors and the overall positive sentiment of investors point to the likelihood of a long-bull run for Ethereum.
Bitcoin Driving Ethereum Price, Other Altcoins to Recovery
Ethereum’s price journey to recovery follows closely with that of Bitcoin, which as of the time of this report, is seen trading at the average price of $54,500 per BTC. That however is not surprising. As per historical and current data, there is a strong correlation efficiency between both assets- calculated to be around 0.88.
Thus, a move in the price of either asset is bound to affect the other. Though Bitcoin seems to be the overall pilot that determines the price direction of other currencies in cryptoverse.
More Positive News For The Crypto Enthusiast
But news generally tends to have the bigger effect- especially when it talks about the addition of another institutional investor into the already massive list of private companies with sizable crypto Investments. There have been a couple of such announcements in the last few weeks.
Notably, Meitu, the popular Chinese app development company, reveals it has bought $40 million worth of crypto as it aims to integrate blockchain features into its suite of applications. Interestingly, Meitu is a publicly-traded company in China.
Another private firm. Aker ASA, perhaps caught into the spinning wheel of the massive FOMO, disclosed its plan to set up a crypto-focused Investment body, Seetee AS, to invest 100% of its liquid assets in cryptocurrencies.
The end of an Exodus as interest in U.S bonds disappears
Meanwhile, initial fears of a possible mass migration of investors to U.S bonds are beginning to dissipate. At the height of the bond yields season, it was observed that a huge number of investors (mostly public) had their attention shifted to the mouth-watering return rate offered by the U.S government- consequently resulting in large sell-offs.
In the end, Bitcoin, Ethereum, gold, and assets (of mostly tech companies) plunged badly. However, there are hopes in sight finally. Ethereum has since recovered much of the depreciated value and looks primed to cross the $2000-mark. Bitcoin also might go beyond $60,000, if it sustains its current upward momentum.
Ethereum on The Charts
Early February, technical indicators as per a Tradingview analysis, shows Ethereum drawing close to the bullish breakouts area against the US dollar. (See the ETH/USD pair for Feb 12.
Ethereum’s price current position sits somewhat above that area, putting it in a perfect position to rally beyond the $2,043 mark. Assuming it performs against that price, it is expected to consolidate around the $1,750 support zone before making another move in the long-term.
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