Ethereum: What Did Help ETH/USD To rise? We're Talking About A 12% Rise!

Eurozone PMI Shows Limited Improvement Amid Lingering Contraction Concerns in September

Relevance up to 09:00 2022-08-12 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

As expected, Ethereum became the primary beneficiary of fundamental positive news. The cryptocurrency took advantage of the general euphoria and rose by 12% over the past day. The weekly increase in ETH/USD quotes reached 15.5%. The main altcoin finally consolidated above the $1800 level and rapidly jumped to the $1900 mark. It is likely that if the current bullish momentum continues, ETH will be able to reach the $2000 level for the first time since May 2022.

 

Exchange Rates 11.08.2022 analysis

 

Ethereum continues its upward movement, taking advantage of positive inflation statistics, which fell below expectations to 8.5%. A gradual decrease in inflation in annual terms indicates the likelihood of curtailing aggressive monetary policy as early as autumn 2022. It is a positive signal for the cryptocurrency market since, after tightening, a pullback to neutral positions will begin. This process will facilitate access to liquidity and, accordingly, will help the birth of a bullish rally. However, in most cases, the main benefit from monetary easing is given to Bitcoin.

 

Exchange Rates 11.08.2022 analysis

 

In the current market situation, everything has changed dramatically. Bitcoin is fading into the background, and Ethereum is becoming the main driving force behind the cryptocurrency market. The main altcoin has been the main investment target of large funds over the past months. This is due to the transition of the coin to the PoS algorithm and the positive changes that will follow. In other words, Ethereum has fundamental growth reasons that provide continued investment interest. Bitcoin cannot boast of this, and therefore grows exclusively on positive fundamental news.

 

Exchange Rates 11.08.2022 analysis

 

The growing interest in Ethereum can be seen in the level of Bitcoin dominance in the market. The indicator is in a downward trend, indicating the interest of investors in other digital coins. The indicator began to seriously decline at the end of July and peaked in August. During this period, the informational hype around the transition of Ethereum to PoS reached its maximum. Over the same period, the level of ETH dominance has grown significantly and, as of August 11, reached 20.24%. This is direct evidence of the flow of investments from BTC to ETH.

 

Exchange Rates 11.08.2022 analysis

 

It also indirectly indicates that the main altcoin will become the primary investment target of the market in the coming weeks. Ethereum received macroeconomic positives in addition to the upcoming update, which will also affect the bullish movement of the cryptocurrency price. The largest issuers of stablecoins, Tether and Circle, have declared full support for the transition of ETH to the Proof-of-Stake protocol. There are also several testnet mergers planned for August, including the successful migration of Goerli to PoS, which should reinforce the fundamental positive for ETH.

 

 

In technical terms, the asset has again reached the overbought level. The stochastic oscillator formed and realized a bullish crossover, due to which the indicator reached the level of 100. The relative strength index came close to 80 and maintains an upward direction, which indicates an increase in buying activity. Ethereum entered a strong resistance area for the first time, and you should not expect its bullish breakdown on the first try. Most likely, we are waiting for a local correction and a short period of consolidation before a full-fledged assault on $2000.

 

Read more: https://www.instaforex.eu/forex_analysis/318679

Eurozone PMI Shows Limited Improvement Amid Lingering Contraction Concerns in September

InstaForex Analysis

Instant Trading EU Ltd. is the CFD broker operating under the brand instaforex.eu, regulated by CySec with license number 266/15.

Besides CySEC, Instant Trading EU Ltd. is also supervised by the Czech National Bank (CNB), the Slovak National Bank (SNB), and the Polish Financial Supervision Authority (KNF). InstaForex.eu has branches in the Czech Republic, Slovakia, and Poland, where it provides support in local languages. InstaForex.eu is a member of the Investor Compensation Fund (I.C.F) which is an additional security for the client's funds.

InstaForex.eu offers access to around 2,500 instruments (CFDs in Stocks, ETFs, IPOs, Indices, Commodities, Forex, Cryptocurrencies, US Synthetic Stocks) and the MT4 and MT5 platforms,trading accounts in EUR, USD, PLN, CZK, GBP.

More information at: www.instaforex.eu

Follow InstaForex.eu on:

Twitter Facebook YouTube

 

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69.82%. of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.