Ethereum price bounced back on Monday as demand for cryptocurrencies resumed. ETH is trading at $4,335, which is about 10% above the lowest level during the weekend. The coin is slightly below this month’s high of $4,877. Its market cap is currently at $514 billion.
Ethereum, like all cryptocurrencies, tumbled sharply on Friday as global tensions rose. The coin crashed by more than 5%. This happened as other assets like stocks and commodities slumped hard. For example, the price of crude oil tumbled by more than 10% while Dow Jones shed more than 900 points.
There are two main reasons why Ethereum price is bouncing back today. First, analysts believe that the impacts of the new Covid-19 variant will be relatively muted just like Delta. Second, the new variant, if it proves more dangerous can lead to a delay of tightening by the Federal Reserve and other central banks.
Third, ETH price is also rising simply because other coins and other assets have rebounded. Bitcoin has risen by more than 5.4% in the past 24 hours. Other coins like Ripple and Solana have also jumped, pushing the total market cap of all cryptocurrencies to more than $2.7 trillion. Finally, Ethereum price is doing well in anticipation of the Santa Rally.
The daily chart shows that the ETH price has remained in a tight range recently. This range is shown using the red triangle. It is also hovering near the 23.6% Fibonacci retracement level. Also, it has moved slightly above the 25-day and 50-day moving average.
Therefore, while it is too early to tell, there is a possibility that the coin will bounce back as we move into December. Historically, cryptocurrencies tend to do well in December and then pullback in January. If this happens, there is a likelihood that the Ethereum price will bounce back and retest the key resistance at $4,877, which is about 14% above the current level.
This post was last modified on Nov 29, 2021, 06:13 GMT 06:13