Ethereum Rally Drives Crypto Market Up 3.5%

Bitcoin back in black at $42,000 despite a 27 per cent decline in trade volume

Ethereum Rally Drives Crypto Market Up 3.5%
Ethereum Rally Drives Crypto Market Up 3.5%

The global crypto market continues to march forward with a 3.5 per cent gain today to stand at $1.68 trillion in the early hours of the day. Trade volumes, down 15 per cent today, continue to be volatile, indicating some uncertainty with investors. The broader market, however, seems to be relishing, spearheaded by a rally in Ethereum (ETH) ahead of its EIP-1559 blockchain update.

ETH zoomed past the $2,600 mark with a 7 per cent gain as the day neared a close. ETH has registered a weekly gain of 21.5 per cent after continuing its relief rally from the past week. ETH brushed past the resistance level at $2,530 while closing in on one at $2,620. Its finds support at $2,330 level.

Bitcoin (BTC), after being in the red for the larger part of the day, closed at a monthly high of $42,150. BTC is heading towards the resistance level at $42,800 after crossing the first hurdle at $41,800. Its support levels are at $39,000 and $37,300. The BTC trade volume declined 27 per cent over the day, indicating intention among short-term investors to book profits from this rally. BTC’s weekly gain of 22 per cent has shifted CNN’s Fear and Greed Index to the greed side after months of extreme fear post the price crash in May.

Among the top 20 altcoins, Polkadot (DOT) and Solana (SOL) registered significant gains of more than 10 per cent. Other coins such as Cardano (ADA), Uniswap (UNI), Binance Coin (BNB), Chainlink (LINK) gained moderately by over 5 per cent.

In the upcoming week, BTC has the potential to retest its $38,000 support level. For sustained momentum, the cryptocurrency needs to stay above the $42,000 level, which will ensure significant gains in some of the altcoins.

Top Gainers

  1. Siacoin (SC): 38.2%
  2. IOTA (MIOTA): 18.3%
  3. Polkadot (DOT): 17.9%

Top Losers

  1. Flow (FLOW): -14.2%
  2. Axie Infinity (AXS): -7.5%
  3. Helium (HNT): -2.8%

The analysis includes the top 100 coins only as of 10 am IST

[Source: CoinMarketCap]

Crypto News at a Glance

  1. Goldentree, a $41-billion hedge fund, has added Bitcoin to its balance sheet to diversify from the debt-based strategies it has used in the past.
  2. Newegg, a leading e-retailer in North America, is expected to become the first merchant to allow customers to pay with Litecoin (LTC) through the Bitpay wallet app starting this week.
  3. Global cryptocurrency exchange Binance, in a move to express commitment to engage with global regulators, announced that it would suspend derivatives trading across the European region, starting with Germany, Italy, and the Netherlands.
  4. The Central Bank of Brazil director has stated that the migration from paper currency to digital payments will accelerate in the next few years. This migration would involve central bank digital currencies (CBDC).
  5. Global payments platform Paypal has announced that it will expand its crypto trading services to British customers. It also stated its intentions to integrate smart contracts and decentralised apps into the platform.

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