On Tuesday, Ethereum briefly exceeded the $1,900 mark as the US dollar experienced a decline against various G7 currencies. Notably, the US dollar’s most significant drop occurred against the British pound, resulting in USD/GBP reaching a 15-month low. Bitcoin also demonstrated an upward trend, surpassing $31,000 earlier in the day.
During today’s trading session, Bitcoin (BTC) reclaimed the $31,000 level as the US dollar weakened across the board.
BTC/USD surged to an intraday high of $31,026.08 earlier in the session, following a drop to a low of $30,156.54 on Monday.
Subsequently, the price has retreated, reflecting the prevailing high market volatility in anticipation of tomorrow’s US inflation report.
BTC/USD – Daily Chart
Upon reviewing the chart, the decline occurred when the relative strength index (RSI) failed to breach the 61.00 resistance level.
At the time of writing, the RSI stands at 58.96, with the next notable support level identified at 55.00.
Furthermore, the 10-day (red) moving average has approached closer to the 25-day (blue) moving average, heightening the likelihood of a downturn.
In today’s session, Ethereum (ETH) briefly surged above the $1,900 range after nearing a drop below $1,800 in recent days.
Following a low of $1,860.62 at the beginning of the week, ETH/USD rallied to reach a peak of $1,905.46 on Tuesday.
However, similar to Bitcoin, Ethereum has subsequently retraced, consolidating for a consecutive fifth session.
ETH/USD – Daily Chart
As of now, ETH is trading at $1,870.15, with the RSI reading at 50.43, slightly below the resistance level at 51.00.
If the RSI manages to surpass the 51.00 zone, there is a strong possibility that Ethereum will reclaim the $1,900 mark.
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Feel free to share your thoughts on the underlying reasons for today’s USD weakness in the comments section below.
Frequently Asked Questions (FAQs) about Cryptocurrency
What caused Ethereum to briefly surpass $1,900?
Ethereum briefly surpassed $1,900 due to the weakening of the US dollar against various G7 currencies, creating a favorable exchange rate for Ethereum.
Why did Bitcoin climb above $31,000?
Bitcoin climbed above $31,000 as the US dollar weakened across the board, leading to increased demand for Bitcoin and pushing its price higher.
Why did the US dollar weaken?
The US dollar weakened primarily due to a decline in its value against several G7 currencies, particularly the British pound, which reached a 15-month low against the US dollar.
What factors contributed to the price fluctuations in Bitcoin and Ethereum?
The price fluctuations in Bitcoin and Ethereum were influenced by factors such as the weakening US dollar, market volatility, and anticipation of the US inflation report, which created uncertainty and led to shifts in investor sentiment.
How can the Relative Strength Index (RSI) affect the price movements of Bitcoin and Ethereum?
The Relative Strength Index (RSI) is a technical indicator used to assess the strength and momentum of an asset. If the RSI fails to surpass a certain resistance level, like in the case of Bitcoin and Ethereum, it can signal a potential decline in price as selling pressure may outweigh buying pressure.
Will Ethereum reclaim the $1,900 mark?
The possibility of Ethereum reclaiming the $1,900 mark depends on factors such as the strength of the US dollar, market conditions, and whether the Relative Strength Index (RSI) can surpass the resistance level. If the RSI rises above the 51.00 zone, there is a strong possibility of Ethereum moving back above $1,900.
More about Cryptocurrency
- Ethereum Official Website
- Bitcoin Official Website
- Technical Analysis Explained
- Understanding Cryptocurrency Volatility
- Relative Strength Index (RSI) Explained
- US Inflation Report
- G7 Currencies
- USD/GBP Exchange Rate
- Market Volatility and Its Impact