Ethereum's Ether (ETH) Experiences Growth amid Positive Crypto and Financial Updates
Summary:
Ethereum's native cryptocurrency, Ether (ETH), experienced a price surge as traders react to positive updates from both the crypto and macro financial markets. The rise, coupled with Valkyrie Asset Manager acquiring approval to add Ethereum futures to its existing portfolio and rumors of possible sanctioning of an array of Ethereum futures ETFs, delivers optimistic news for the said cryptocurrency. Inflation and interest rate data from the U.S. Federal Reserve also offered Ethereum a boost, contributing to the overall favorable price fluctuation.
The cryptocurrency Ether (ETH), native to the Ethereum network, experienced a price boost today as traders responded to a raft of optimistic updates from both the crypto and wider financial markets. On September 29th, ETH's value increased around 2.5% to reach $1,688, a pinnacle not seen in a month. This encouraging shift in fortune arrived hot on the heels of news that Valkyrie, a respected asset manager, received the official go-ahead to integrate Ethereum futures into its existing Bitcoin Strategy ETF (BTF). This came amid rumors that the U.S. Securities and Exchange Commission (SEC) is set to sanction an array of Ethereum futures ETFs for take-off next week, with no less than fifteen candidates from nine separate issuers in line for the green light.
Extra momentum for Ethereum arrived via the latest U.S. core personal consumption expenditures (PCE) results, the favoured inflation yardstick of the Federal Reserve. Unusually, the PCE rose a mere 0.1% in August, falling short of market predictions by 0.1%, which relieved some of the mounting pressure from increasing U.S. bond yields, thereby giving a shot in the arm to non-yielding entities such as shares and cryptocurrencies.
A slowing inflation rate infers a halt in the Federal Reserve's interest rates at the present level of 525-550 basis points (bps). Projections from CME's Fed futures rate reveal a 87.5% likelihood of a rate freeze in November's forthcoming Federal Open Market Committee's (FOMC) gathering.
Highlighting the positive trends for Ethereum on September 29th, short liquidations totalling $7.88 million outpaced long position liquidations, of which there were only $1.7 million worth. A rise in short sellers buying underlying assets, coupled with the influx of new buyers, drove Ether's price up.
As a consequence of these events, the cost of Ether exceeded its 50-day exponential moving average (50-day EMA), hitting around $1,770. Seizing the 50-day EMA from resistance to support set Ethereum on a prospective course for a new high of approximately $1,740 in October 2023.
With the 50-day EMA support now secured, Ether faces a drop towards the 0.5 Fib line around $1,610 in October, should it unfortunately slip underneath it, leading to around a 3.75% descent from the current price bracket.
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Published At
9/29/2023 3:28:37 PM
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