Ethereum price at its highest level since mid-May – march through to $ 4,000?
The Ethereum rate, the second most important digital currency in terms of market size, rose by another five percent compared to the previous day to over $ 3,529 per unit, which is also the highest level since the middle of the week. In addition to a technical breakout on the upside, which is forcing follow-up purchases, currencies from the second and third rows could now gain increasing attention again. At the same time, ethers continue to play trending topics such as “DeFi” and “NFT”.
“Decentralized finance” or “non-fungible tokens” are currently the hot topics in the economy of Ether and Co. The underlying Ethereum blockchain is increasingly profiting from this background, especially since the said fields of application are based on technology. The “DeFi” sector usually refers to topics similar to banks, such as lending. Non-Fungible Tokens (NFTs) can be understood as a kind of crypto art. Assets are made unique using the underlying technology.
On the upside, investors could now increasingly target the $ 4,000 mental mark. On the other hand, the 3,000 mark remains to be considered. Downside risks cannot be neglected in this context.
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Bitcoin still below $ 50,000 – the calm before the storm?
Bitcoin, the largest and best-known cryptocurrency at the same time, is still trading below the psychological mark of $ 50,000, but above the 200-day line that is decisive for the longer-term trend. Overall, the situation continues to be positive, even if short-term profit-taking had recently shaped the chart. It is possible that there is currently the notorious calm before another storm, or a so-called accumulation phase. Investors literally take a breath to prepare for further price movements. Another price rally, which could start from the technical level of 52,000 dollars, should also play currencies from the back rows into the cards. If the Bitcoin course starts up to $ 60,000, the Ethereum course should also benefit in this context.
Downside risks remain smoldering – enforced regulation possible this year
Overall, investors should not lose sight of simmering concerns about regulations in the Middle Kingdom and the USA. Most recently, China had once again warned against investing in crypto currencies and at the same time communicated that it would continue to mobilize against the industry. Even in the USA, under the leadership of President Joe Biden, headwinds could arise this year. In addition to tax plans, it is above all the money laundering issue that could be a topic of conversation. Hard regulation is less to be expected in the United States. Nevertheless, tightening the regulatory belt could meanwhile take Bitcoin, Ether and Co to breathe.
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