Ether has been steadily climbing
The cryptocurrency market is developing its growth, which is now also supported by Bitcoin. In the last 24 hours, the capitalisation of all cryptocurrencies has risen by 2.7% to 2.66 trillion, while the first cryptocurrency has risen by 0.8%.
At the same time, it is important to note the continued pressure on BTCUSD, which is being kept off the ground by financial market worries. On Tuesday, Powell acknowledged the inflation problem in the US and suggested abandoning the term "transitory", which he coined at the start of the year. For the markets, this means that the world's top central bank has stepped up the inflation warpath and become more hawkish, promising a higher degree of volatility for traditional markets. Among cryptocurrencies, this promises to have the greatest impact on bitcoin as it is the most populated by financial institutions.
Likely due to volatility and Bitcoin's inability to move to sustained growth, the cryptocurrency Fear and Greed Index has once again been pushed down 6 points to 34.
However, note that ETHUSD is up almost 12% in the last seven days, continuing to climb the ladder again step by step. Its current level of $4720 is an arm's length away from the historical highs set in November at $4840 and has been gaining steadily for the fourth day in a row.
Here we see a classic market pattern: consolidation at an important level in September, a breakout and subsequent steady and methodical buying throughout October and the first half of November, and finally a period of correction and cooling off in November while maintaining significant levels. Now, the correction and consolidation look complete, and the ether looks set to rewrite historical highs.
Among the fundamental global drivers behind this sentiment are improvements in the network itself and its applicability to working projects, as well as the balance between supply and demand for coins. In choosing between the leading currencies, the cryptocurrency world is betting on Ether as the future of cryptocurrency as a business, with bitcoin still being a good savings vehicle, but now becoming vulnerable to the turmoil of the traditional financial.
This article was submitted by FxPro's Senior Market Analyst Alex Kuptsikevich.