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Ethereum is trying to soar again

The second largest cryptocurrency, Ethereum has rebounded from support near $1560, and sentiment around cryptocurrencies is improving ahead of the upcoming weekend which could herald the return of high volatility in the coming hours:

  • Markets are awaiting a weak NFP report from the U.S. economy, which could prompt the Federal Reserve to put the brakes on further interest rate hikes. The release of the data will take place at 2:30 p.m. Polish time and could cause a spike in price volatility in both index contracts and the cryptocurrency market;
  • Bitcoin today climbed above $23,000 again, with buyers showing strength by pulling the 'king of cryptocurrencies up from yesterday's lows. The BTC price came dangerously close to the 200-session average on the weekly interval;
  • The market's biggest interest is still Ethereum, developers are in the process of working on the Goerli test network. The Ethereum tests initiated by the developers will be the final ones before the cryptocurrency's official transition to version 2.0, which is scheduled for September 19 of this year;
  • A report by analysts at Bloomberg Intelligence indicates that institutions may become interested in the cryptocurrency after Ethereum's transition to the green version 2.0. Additionally, Ethereum beats Bitcoin in terms of active users, addresses and daily volume transferred to the network.
  • Analysts also pointed out that cryptocurrencies in the future could go the way of 'ETFs' which would mean intensifying the work of regulators. Potentially such a solution could be of interest to the largest asset management fund building its position in the cryptocurrency world, BlackRock - a provider of ETFs known as 'iShares'. The fund has made the artificial intelligence (AI)-based analytical tool ALADDIN available to instututes interested in the cryptocurrency market. The partnership with BlackRock was announced yesterday by Coinbase, the largest cryptocurrency exchange in the US, which resulted in euphoria on the company's shares.Transaction fees on the Ethereum network fell and approached $3 levels, last seen in December 2020. The drop in 'gas fees' is a relief for the network, which has been repeatedly weighed down by high transaction prices. High fees were limiting ETH adoption and holding back the growing popularity of NFT tokens and De-Fi, which was seen as 'expensive' and uncompetitive against other financial services. Ultimately, average transaction fees are expected to fall well below current levels. Source: KAIKO, Etherscan

Ethereum chart, H4 interval. The second largest cryptocurrency is attempting to permanently break through short-term resistance near $1650. A breakout above this boundary could herald another wave of growth. On the chart we can see the double-bottom formation formed on August 2 and 4. Yesterday, the declines slowed down again at $1560 where strong demand appeared. The channel in which the price is moving is marked by the 38.2 and 21.6 Fibonacci retracement, which runs between $1560 and $1650. A rise above $1650 could mean a continuation of the rally. The price of Ether has been in a downtrend since mid-July 2022 and is holding the trendline. At the same time, a strong NFP report may indicate declines in valuations of risky assets. Source: xStation 5

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