Ethereum, the second-largest cryptocurrency by market capitalization, broke the $2,000 mark on Thursday, following the successful implementation of the Shanghai upgrade. The update, also known as “Shapella,” was completed late Wednesday night and enabled withdrawals on the blockchain. Meanwhile, Bitcoin remained above $28,000, continuing to trade above the $30,000 mark, buoyed by the latest U.S. inflation report, which fell to 5%. The BTC/USD rose to an intraday peak of $30,462.48 earlier in the day, after hitting a ten-month high of $30,584 on Tuesday.
The slight rise in Bitcoin’s price today comes as the 14-day relative strength index (RSI) bounced from its floor at 68.00. At the time of writing, the index is now tracking at 69.73, with the next visible point of resistance at 71.50. If the index moves beyond this point, there is a good chance that Ethereum will move past $30,500.
On the other hand, Ethereum outperformed Bitcoin in today’s session, climbing by around 7% after the Shanghai update, which boosted its price. The ETH/USD surged to a peak of $2,007.05 earlier in the day, less than a day after trading at $1,882.37. As a result of today’s surge in price, Ethereum hit its highest level since last August.
This eight-month high came as price strength rose beyond a ceiling at 65.00, now at a reading of 69.44. A resistance level of 75.00 appears to be the next hurdle for bulls, and should momentum continue in an upward direction, ETH could move above $2,100 this week.
The cryptocurrency market has been on a bullish run in recent months, with Bitcoin and Ethereum leading the charge. The market capitalization of all cryptocurrencies has surged to over $1.5 trillion, with Bitcoin accounting for over 60% of the market.
However, the market remains volatile, with prices fluctuating wildly. In May, the market experienced a sharp correction, with Bitcoin falling from an all-time high of $64,000 to just above $30,000. The market has since recovered, with Bitcoin now trading above $30,000 once again.
Despite the volatility, many investors remain bullish on cryptocurrencies, seeing them as a hedge against inflation and a store of value. Others see them as a speculative investment, with the potential for high returns but also high risks.
As the market continues to evolve, governments and regulators around the world are grappling with how to regulate cryptocurrencies. Some countries, such as El Salvador, have embraced cryptocurrencies, with Bitcoin becoming legal tender in the country. Others, such as China, have cracked down on cryptocurrencies, banning mining and trading.
In the United States, the Securities and Exchange Commission (SEC) has been scrutinizing cryptocurrencies, with several high-profile cases involving initial coin offerings (ICOs) and other cryptocurrency-related activities. The SEC has also delayed a decision on whether to approve a Bitcoin ETF, citing concerns about market manipulation and investor protection.
Despite the regulatory challenges, the cryptocurrency market continues to grow, with new projects and innovations emerging every day. As the market matures, it is likely that we will see more mainstream adoption of cryptocurrencies, as well as greater regulatory clarity.
Overall, the cryptocurrency market remains a dynamic and evolving space, with both risks and opportunities for investors. As always, investors should do their own research and exercise caution when investing in cryptocurrencies.
