Ethereum Strengthens, Supported by Bitcoin Rally

Ethereum is starting off Monday on an active note, experiencing considerable volatility in the Asian session when its price dipped towards $1,709 and then bounced higher. At the time of writing, ETH is trading somewhat cautious around $1.680.

For now, the bullishness in ETH looks set to continue, with prices experiencing a correction higher after the cryptocurrency fell to a low of $1,450 during the past week. Over the weekend, the digital currency experienced considerable activity, with the value rising to a high of $1,595 over the weekend and going above $1.750 before easing lower earlier today.

Ethereum has benefited from the rally in Bitcoin following news of the US getting ready to approve President Biden’s plans for an additional $1.9 trillion worth of stimulus measures. Biden’s stimulus bill recently made its way through the US Senate, securing a majority to clear it without the support of Republicans. This development not only served to weaken the US dollar but also increased investors’ interest in the world of cryptocurrencies, sending Bitcoin back above the $50,000 level and driving ETH higher as well.

There is also an increased interest in Ethereum in anticipation of an upcoming upgrade to the network, known as EIP-1559, which could potentially solve the issue of soaring transaction fees and network congestion. These issues had recently sent ETH crashing lower after crossing the $2,000 level, and driven up the popularity of alternatives, especially Binance Smart Chain.

For now, ETH is likely to move in parallel with BTC in the near-term, and both cryptocurrencies are expected to maintain their moment upwards. The next key level of interest remains $1,700 where it could experience some resistance.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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