Cryptocurrencies showing signs of recovery

Cryptocurrencies showed signs of recovery on Tuesday, after falling heavily in the past few days. Bitcoin price tumbled to its lowest level in April this week, after reaching its highest point since June 2022 the week before. On Tuesday, however, cryptocurrencies started to rally.

Bitcoin price edged higher on Tuesday, touching $27,700. If the BTC price declines, support can be found near $27,000, while resistance may be encountered near $29,500. 

Ethereum traded sideways on Tuesday, oscillating around the $1,830 level. If Ethereum's price declines, it may encounter support near $1,760; if it increases, resistance may be encountered at $2,120.

Ethereum price went up in the past few weeks, as the highly-anticipated Shanghai upgrade took place on April 12th without incident. This upgrade allows Ethereum network validators to withdraw their staked Ethereum from the blockchain network, effectively completing its transition to a proof of stake model. The anticipation leading up to the upgrade boosted the currency considerably. Ethereum's price deflated in the past week as the news of the successful upgrade was no longer sufficient to sustain the market’s interest. 

The recent banking crisis has undermined trust in the banking system, raising the appeal of investing in less conventional assets, such as cryptocurrencies. Many investors have turned towards cryptocurrencies fearing a globalised meltdown in the banking system.

Increased rate hike expectations put pressure on cryptocurrency prices, however. The Federal Reserve raised interest rates by only 25 basis points at its meeting in March, bringing the benchmark interest rate to a target range of 4.75% to 5.00%. Market odds currently favor another 25-basis point rate hike at the Fed’s next meeting in May. 

BTC/USD 1h Chart

ETH/USD 1h Chart

The content provided in this material and/or any other material that this content is referred to, whether it comes from a third party or not, is for information purposes only and shall not be considered as a recommendation and/or investment advice and/or investment research and/or suggestions for performing any actions with financial products or instruments, or to participate in any particular trading strategy and cannot guarantee any profits. Past performance does not constitute a reliable indicator of future results. TopFX does not represent that the material provided here is accurate, current, or complete and therefore shouldn't be relied upon as such. This material does not take into account the reader's financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of TopFX, no reproduction or redistribution of the information provided herein is permitted.

Written by:
Myrsini Giannouli

Share the article: