Ethereum price (ETHUSD) cruised past the important resistance level of $146.3 as the main cryptocurrencies soared. ETH, which rose by almost 8%, was the best-performing cryptocurrency among its ten closest peers. As we reported earlier, Bitcoin price rose by 4.7%. ETH price is up by more than 17% in the past seven days while BTC has risen by 17%.
The catalyst for the current rally was not immediately clear although the jump comes in a day when global stocks are rallying. The DAX index is up by more than 3% while the FTSE index is up by more than 2%. Wall Street futures too point to a higher open. Perhaps, crypto investors are reacting to the positive vibe in the market.
Another reason could be related to halving. With halving being less than 40 days away, investors are likely hoarding crypto in anticipation of demand. As I have written before, the price of Bitcoin tends to rise before and after halving. Similarly, the price of ETH tends to follow Bitcoin. Therefore, there is a likelihood that this will continue.
Another scenario is that investors are excited about news that South Korea has just launched a new 22-month pilot program on digital currency. Still, it is not unclear whether the bank will use the digital currency. Also, past plans by central banks like PBoC have not materialized.
Looking at the four-hour ETHUSD chart, we see that the pair cruised above the important resistance level of 146.3, and is now trading above 154.00. As the pair rose, it moved above the ascending triangle pattern shown in blue.
It is also above the important support shown in black. In the near term, I expect the pair to retest the support at 150.00, which is at the intersection of an important swing and the support shown in black.