Bitrabo Editorial
The value of Ethereum, along with other cryptocurrencies, has risen in recent days, leading to a surge in the cryptocurrency market as a whole. According to information presented by Coingecko, the market grew by over 1% in the past 24 hours, with Ethereum itself having risen by 5.5% since last week.
The bullish trend in the market can be attributed to various recent on-chain and macro developments that have boosted investor confidence in the broader financial market. Ethereum has particularly benefited from a resolution to the US government debt ceiling, which saw the country’s debt of $31.4 trillion suspended following negotiations between President Joe Biden and Republican Congressman Kevin McCarthy.
What is a US Debt Deal?
A US debt deal is an agreement reached by the United States government to address its national debt and borrowing limits through political negotiations that determine the government’s spending levels and borrowing capacity.
The impact of debt deals on cryptocurrencies varies depending on several factors, such as investor sentiment, inflation concerns, regulatory environment, and market volatility, among others. The next step following the debt ceiling agreement is for Congress to vote on the proposal.
What’s Next for Ethereum?
Despite the current bullish momentum, investors and traders should exercise caution when considering the future of Ethereum. The currency’s level is known to be the lowest in the past five years due to a decrease in balance on centralized exchanges as investors and traders increasingly hold onto their ETH rather than sell.
The upcoming Cancun-Deneb upgrade will improve various aspects of the Ethereum blockchain, including scalability and security, and introduce a new technique called Danksharding, which will increase data availability on-chain. This will enhance Layer 2 rollup technology to be more efficient and optimized, contributing to the growth of Layer 2s.
Investors and traders should continue to monitor macro developments in the broader financial market and look toward the possibility of further gains in the coming weeks and months. Bulls should especially focus on the Dow Jones Index and S&P 500, which are expected to gain ground in the short term.
Investor Caution Advised
The value of Ethereum currently hovers above the $1.8k support level, and it is believed that this level should hold in case of a downward slide. The current momentum suggests that Ethereum could surpass the $2k mark in the medium to long term, with investors potentially targeting $2.5k once the $2k level is surpassed. However, investors should remain cautious, as Ethereum may return to $1.7k if the market continues to correct.
Note that this content should not be considered investment advice; investing always carries risks.
-Featured image from The Merkle News