Bitcoin and Ethereum Reaching New Heights?

An Unforgettable Event Elevating Trading Education 

It seems that the positive momentum in the cryptocurrency market is clearly driven by both Bitcoin and Ethereum. The price of Bitcoin reached $71,958 today, its highest level since April 8, 2024, while the price of Ethereum reached $3,719, its highest level since April 9, 2024. Thus, the price of Bitcoin has risen by about 27% since its May 2024 low of $56,500. Similarly, the price of Ethereum has risen by about 32% since its May 2024 low of $2,815. The challenge for both digital currencies is to reach their respective highs of $73,794 (recorded on March 14, 2024) for Bitcoin and $4,095 (recorded on March 12, 2024) for Ethereum.

Regarding the technical and fundamental factors that may support these prices, we note the following:

  • The possibility that the US Securities and Exchange Commission will grant approval for the creation of traded funds for direct investment (ETFs) in Ethereum within the next few days.

  • The possibility that the Federal Reserve will begin lowering interest rates in September of this year.

  • Large institutions continue to increase their Bitcoin holdings, even if in small proportions, for diversification and due to strong optimism in this industry.

The technical outlook for both Bitcoin and Ethereum appears encouraging. Several technical indicators may support their prices in the next phase for the following reasons:

First: The 20-day moving average is close to the 50-day moving average. Any bullish intersection or “Golden Cross” between them can indicate an upward trend to both Bitcoin and Ethereum.

Second: The Relative Strength Index (RSI) currently registers 65 points for Bitcoin, indicating upward momentum. For Ethereum, the RSI currently records 70 points, placing it in the overbought area, which also indicates positive momentum.

Third: The MACD indicator is in the positive zone, with the blue line exceeding the orange signal line, which gives positive momentum to both Bitcoin and Ethereum.

Please note that this analysis is provided for informational purposes only and should not be considered as investment advice.

*All trading involves risk