Ethereum price soared on Friday, flipping the important $1.9K level amid positive sentiment in the overall crypto market. At press time, Ethereum was trading 6% higher at $1,990.31. The altcoin’s total market cap has jumped 6.25% over the last day to $239.8 billion, while the total volume of ETH traded increased by 23.51%.
Ethereum price is set to end the week higher as investors digest the latest interest rate hikes by the US Federal Reserve and the European Central Bank. The crypto market is getting rid of weak hands as markets experience major volatility. The global crypto market cap has increased 2.78% over the last day to $1.22 trillion, while the crypto market volume rose by 14.16%.
The US Federal Reserve announced on Wednesday a 25-basis point interest rate hike, the third rate hike this year. Usually, an environment of higher interest rates has proven to be bearish for risk assets such as stocks and especially cryptocurrencies. However, markets had already priced in the hawkish move by the US Central Bank as no major sell-off was seen in cryptocurrencies.
The European Central Bank (ECB) slowed the pace of its interest rate hikes on Thursday but suggested more tightening to come as it continues to battle inflation. All ECB’s policymakers except one, supported the 25-basis point rate hike to 3.25%, following an unprecedented series of 75 and 50 basis point hikes since last July.
US Treasury yields edged higher on Friday as investors gauged what April’s jobs data means for the economy and the Fed rate hike. The yield on the 2-year Treasury yield ticked higher to 3.918%, while the 10-year Treasury yield rose to 3.435%. The US dollar currency index, which measures the performance of the greenback against other major currencies, inched slightly lower on Friday to 101.282, at the time of writing.
The daily chart shows that the Ethereum price has staged a strong comeback over the last day, jumping above the $1.9K level. Ethereum, the largest altcoin by market cap, has been on a slow but steady upside trajectory for the past few days, climbing more than 4% in the past week and more than 66.19% in the year to date.
The asset has managed to remain above the 50-day and 100-day moving averages, as well as the 50-day and 200-day exponential moving averages. It is also hovering above the 50-day and 100-day simple moving averages. Its Relative Strength Index (RSI) is currently at 58.
As such, a move past this year’s high at $2,145 will likely push the Ethereum price higher to $2,200. However, a drop below the $1,900 level will invalidate the cautiously bullish thesis.