The cryptocurrency market has grown back above $1 trillion amid sustained buying.
Despite its correlation with the Nasdaq 100, BTC appears to be charting a more ambitious growth curve with a healthy medium-term outlook.
Ethereum’s worst days appear to be over as the No. #1 has its sights set on the $1,600 resistance level
The digital currency ecosystem has been trending very positively since the start of the week, as the combined market capitalization has retested the $1 trillion resistance point, for the first time in over a month.
The latest surge in the digital currency ecosystem is fueled in particular by the impressive price actions of both Bitcoin (BTC) and Ethereum (ETH). In the last 24 hours, BTC has added $1,850 to grow to $23,372, a price that represents a growth of 8.3%. ETH has also posted massive growth over the past 2 days, breaking the psychological barrier of the $1,500 resistance level to reach a 24-hour high of $1,580 according to data from CoinMarketCap.
From the latest events in the digital currency ecosystem, it is quite uncertain what is driving the growth that is being seen, but it certainly highlights how overdue the upward correction is since the crypto winter began.
Has Bitcoin found new support?
Bitcoin is particularly in the spotlight for most institutional investors as the asset appears to be breaking out of a unique correlation with the tech-heavy Nasdaq Composite. With capital injections from companies like MicroStrategy and El Salvador boosting the Bitcoin currency in recent weeks, the inherent change in the main currency could be seen as overdue.
While the flow of funds isn’t big enough to sustain a turnaround, it was enough to restore a glimmer of confidence, especially among retail investors.
The BTC/USDT trading pair, as seen on the 4-hour chart above, indicates a trend that may be very short-lived. Also, the RSI shown for BTC is currently almost oversold for the current time frame, the coin is trading well above its 50, 100 and 200 day moving averages, an indication that we are right in the middle of preparing. the stage for a buying opportunity that will favor the long term.
The worst days of Ethereum seem to be over
Ethereum has notably shown an impressive stride in recent days as its price has grown by more than 50% since the crypto market rejuvenation began. ETH has every reason to chart an upward growth path as the developers at the Ethereum Foundation have agreed to launch The Merge on the Mainnet by September 19.
While the date is still tentative, it gives a sense of closure to its investors, most of whom have bet to be a part of the new proof-of-stake (PoS) protocol to emerge.
The advent of Ethereum 2.0 is notably a major reason for investors to start hoarding coins early as the entire protocol is poised to improve its ESG outlook due to being more energy efficient as well as dealing with clouds. commission that prevented many from using the ETH blockchain more often, a more usable blockchain for users in general. All of these reasons are bound to fuel the continued accumulation of the coin in the near future.
The price trend of Ethereum is closely related to that of Bitcoin and a similar assumption applies. However, the Ethereum network has more viable utility and is meant to make its own growth more stable in the long run. For now, Ethereum’s worst days are over and a break above $1,600 is imminent in the short to medium term.