However, analysts believe that the recovery might be short-lived amid the macroeconomic turbulence and rising fears of recession. Thus, traders need to be cautious for the time being, they add.
Barring the XRP and US dollar-pegged Tether, all top crypto tokens were trading sharply higher on Tuesday. Solana zoomed up to 8 per cent, whereas Bitcoin and Polkadot were up by 6 per cent each.
The global cryptocurrency market cap was trading higher at $962.94 billion, gaining more than 4 per cent in the last 24 hours. However, the total trading volume zoomed almost 52 per cent, close to $81.16 billion.
Expert Take
Edul Patel, CEO and co-founder, Mudrex said that Bitcoin and Ethereum rose in tandem with the equity markets.
“Bitcoin buyers could seize the initiative above the $19,500 level by entering the market after digesting macroeconomic factors. The second largest cryptocurrency, Ethereum, regained its psychological support at $1,300.”
Global Updates
- Authorities in China’s Hunan province arrested 93 people for allegedly laundering up to RMB 40 billion ($5.6 billion) using cryptocurrencies, as the country continues to crack down on crime that includes digital assets.
- The Commodity Futures Trading Commission (CFTC) filed and settled charges last week against a blockchain protocol and its founders that could have an enormous ripple effect on the crypto industry.
- Michael Patryn the co-founder of failed Canadian crypto exchange QuadrigaCX who goes by the moniker ‘Sifu,’ has started UwU Lend, a decentralized-finance (DeFi) platform that is a fork of the Aave blockchain.
- Decentralized file sharing protocol Filecoin saw a nearly sevenfold growth of data suppliers since the start of 2022, ahead of plans for a major upgrade in early 2023.
Tech View by Giottus Crypto Platform
Ethereum (ETH) is the second-biggest and most popular crypto after Bitcoin. Recently on September 15, Ethereum went through the most ambitious upgrade in its history so far, known as The Merge. With the event, amid much fanfare, Ethereum has now officially shifted to a proof-of-stake consensus algorithm.
In the aftermath of the Merge, Ethereum has mostly held the downtrend it got into in the second week of September. Today, Ethereum is up by about 5% in the last 24 hours, situated at $1365 – down nearly 25% from its local high of $1,790 on September 11.
From around mid-September, ETH formed a parallel channel with several consecutive lower lows until September 21, when it bottomed at around $1,240 and went on to test the resistance level of $1,340. The $1,270 level, marked by the 0.618 fib retracement level, is currently acting as ETH’s immediate support.
ETH needs to overcome the 20-day EMA of around $1,425 to mark a possible trend reversal. The RSI, having failed to break out of the 39 ceilings meanwhile, shows that if ETH continued the descending path, it would enter the oversold zone.
Major levels:
Resistance: $1,350, $1,400, $1,440
Support: $1,250, $1,210
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)
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