Ethereum, the second most important cryptocurrency in the world, is rebounding today by nearly 7% and returning above $2,000. One of the reasons for the good streak in the cryptocurrency market is the news of the settlement between Ripple and the SEC.
Most likely, the main reason for Ethereum's rebound is the good market sentiment, and the most oversold cryptocurrencies have recently been bought up. It is worth mentioning that Ethereum has lost 50% of its value since its December peak, while in the case of Bitcoin, it is a drop of about 20%.
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Create account Try a demo Download mobile app Download mobile appSeveral factors are being discussed in the market:
- Donald Trump recently announced his desire to create a strategic reserve of US cryptocurrencies. Although specifics are still lacking, Ethereum would be one of the components of such a reserve.
- It is also indicated that large players, the so-called "Whales," are buying Ethereum after a 50% price drop.
- There is speculation about a new Ethereum upgrade called Pectra. This is supposed to solve certain blockchain problems and lower costs. Ethereum would be more competitive against Solana or Sui.
- On the other hand, there is talk of sending Ethereum to exchanges, which in turn may suggest a desire for further sales or profit-taking after the recent rebound.
- Ethereum is still being sold off by ETF funds.
In recent weeks, only on March 3rd did we have a net inflow of capital into ETH ETFs. Source: Bloomberg Finance LP.
Ethereum's price recently fell to its lowest level since October 2023, although in December the price broke through the $4,000 level. The price is rebounding today after several days of consolidation, which could potentially mean accumulation, although at the same time the main stimulus for the cryptocurrency was information about Ripple. From a technical point of view, the key resistance area is around the $2,250-2,300 level, where the 23.6 retracement of the last downward wave and the 30-day average are located. Breaking through this resistance could change the sentiment on the cryptocurrency, but the price would still remain within the downward trend channel. Source: xStation5.
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