During the week's trading, Ethereum has experienced a significant strengthening of its bullish outlook. Within a 24-hour period, it saw a 4.8% gain, aligning with a market-wide recovery led by Bitcoin, the most prominent cryptocurrency. Bitcoin surged by over 7%, breaking through the $29,000 resistance level after last week's sell-off that saw it drop below $25,000. Currently trading at $1,815, Ethereum, the largest smart contracts token, is on the verge of reaching above $2,000 for the first time since early May. This week, crypto markets have shifted towards a substantially bullish sentiment as investors re-evaluate the potential short-term gains following the Federal Reserve's decision on interest rates. Notably, more institutional investors are entering the crypto market through various products. For example, EDX Markets, backed by Fidelity Investments, launched this week.
It is a crypto exchange platform catering to the needs of brokers and investors seeking to avoid the operational issues that led to the collapse of FTX. Ethereum's price has maintained a bullish outlook with buy signals emerging. It currently sits above several moving averages, including the 200-day Exponential Moving Average (EMA) at $1,728, the 100-day EMA at $1,785, and the 50-day EMA at $1,806. The bullish trend, which began after the recent dip to $1,625, is now approaching the $2,000 mark. Additionally, a buy signal from the Moving Average Convergence Divergence (MACD) indicator is poised to further support the anticipated move above $2,000. The influx of funds into Ethereum markets, as indicated by the Money Flow Index (MFI) nearing the midline after dropping to 27 on Monday, contributes to the trend reversal. If buyers respond to the MACD's call to purchase Ether, it would enhance the liquidity supporting this reversal. With regard to trend corrections below $1,800, it is important to monitor key support areas such as the 200-day EMA (purple) at $1,728 and the potential support highlighted along the ascending trendline.
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