Ethereum back above $3,400 as market cap returns to $408bn
Ethereum, the world’s second-largest cryptocurrency, today breached $3,400 for the first time since January.
The six-year-old digital asset – brainchild of programmer Vitalik Buterin – has spent much of 2022 struggling to find form after dropping below the apparent level of resistance on January 7 and slipping to as low as $2,435 before the month was out.
Signs of robustness are, however, beginning to creep back into the markets, handing Ethereum a market cap of $408 billion. The price of Ether peaked at $4,867 in November 2021.
Despite piercing through $3,400, ETH took a minor tumble as the US markets opened today, dropping back to $3,336 before a brace of ascending bounces returned it to £3,380.
The move was reflective of the wider crypto markets, and echoed similar patterns seen in other major cryptocurrencies.
Bitcoin tripped at $47,562 to $46,228 before lifting back to $46,500.
The pattern was also mirrored by Cardano, with its native coin ADA hitting $1.23 earlier before the main digital assets joined hands and jumped over the cliff. It landed at $1.16 before a swift return to $1.18.
Today’s movement has a familiar gait. It has, after all, been walked before – more than a week of green, followed by a potential period of consolation prior to what has – historically – been a signal of intent of upwards momentum. It’s a movement which has often – but not always – given way to the bullish playbook.
This notion is backed up by a dramatic turn in the traditional barometer of crypto sentiment – the Fear and Greed Index.
Last week, the index needle was jabbed firmly into ‘Fear’, this week it has swung to ‘Greed’ before settling upon ‘Neutral’, where it currently sits, pointing, to all intents and purposes, towards consolidation.
Of course, seasoned analysts will know that, even though the signs give off a recognisable aroma, it would be unwise to fall under the intoxicating allure of promising perfume. While many swear by historical patterns, many more have been caught in the traps that line these paths.