ETH Euphoria Keeps Pushing
We’re So Back? Ether pierced $3,000 to the acclaim of many on Crypto Twitter before sliding back beneath the psychological bull barrier Friday morning. Where do prices go from here?
In under one month, ETH has rallied 40% off the $2.2k local lows it established as crypto prices plunged in the days following spot BTC ETF debuts! While the ETH/BTC ratio initially surged on ETF approval as traders positioned for Ether’s inevitable spot ETF, it fell throughout the second half of January and early February as spot BTC ETF inflows accelerated.
Over the last ten days however, this trend was interrupted, with the Ratio suddenly regaining its strength and ripping up by 13% to retest the downtrend that has plagued Ether HODLers since prior to the Merge in September 2022!
Bulls are celebrating the rally, pointing to upcoming fundamental catalysts like L2 gas reductions from EIP-4844 and approval of spot ETH ETFs to rationalize the move upward in price, but it is abundantly evident that Ether is facing strong technical resistance and it remains to be seen whether price can blow through this menacing barrier.
In TradFi land, all eyes are tuned to AI darling Nvidia (NVDA), whose upcoming earnings call takes place today at 5PM EST after US stock markets close.
NVDA led the rally in equities on the way up and now serves as a key barometer of the broader market’s strength; a poor earnings release could disrupt the virtually uninterrupted rally risk assets have experienced since October 2023.
It's interesting that Nvidia's, $NVDA, earnings have become a market-wide event.
— The Kobeissi Letter (@KobeissiLetter) February 21, 2024
In fact, Nvidia has become so large that it would be the 10th largest stock market in the world by market cap.
Nvidia is currently double the size of the entire Italian stock market.
It's also… pic.twitter.com/EsLRYP4m9Q