ETH on The Up

Alongside the sizeable rally we’re seeing in Bitcoin currently, Ethereum is also making its way higher. The second largest-traded crypto coin has broken out this week, now trading back at levels last seen in early 2022, up around 35% from the YTD lows. The improved crypto sentiment on the back of the SEC Bitcoin ETF approvals seen earlier this year has been a major boost for ETH. With Bitcoin ETFs now live, traders project similar ETH ETFs to come in the near future, driving demand for the coin.

Paypal Owner’s Bet

It was revealed this week that Paypal’s billionaire co-founder Peter Thiel’s Founder’s Fund made a $200 million bet on Bitcoin and Ethereum late last year. Additionally, industry data has reflected a recent uptick in Bitcoin whales (account with +100- BTC) turning bullish. In all, the news has helped bolster bullish sentiment among crypto traders, driving ETH higher alongside BTC.

Bullish Outlook

Looking ahead, the near-term outlook is favourable for crypto assets with the Fed widely expected to start cutting rates this year. The prospect of looser financial conditions has been driving stocks higher recently, creating a beneficial risk-on environment which is also helping fuel crypto gains.

Technical Views

ETH

The rally in ETH has seen the market breaking out above the 2633 level. Price is now testing the bull channel highs ahead of the 2949 level resistance. While stalling for now, the focus remains on further upside and a breakout above this resistance in line with bullish momentum readings.

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