 |
| Bitcoin and Ethereum Reach 9-Month Highs After Federal Reserve's Liquidity Injection |
Bitcoin and Ethereum have seen a surge in prices in recent trading sessions. Bitcoin reached a fresh nine-month high on Friday, as its price surpassed $27,000 after the U.S. Federal Reserve pledged to backstop troubled banks with a record $152.9 billion liquidity injection. This move saw Bitcoin reach its strongest level since June 2022. Technical analysis suggests that the 10-day moving average is on the verge of an upwards crossover with its 25-day counterpart, indicating a potential longer-term bull run. The 14-day relative strength index has also broken out of a resistance level and entered overbought territory, reaching its strongest level since early February.
Ethereum has also seen a price surge, with prices moving back above $1,700. ETH/USD reached a high of $1,766.55 in today’s trading session, less than 24 hours after hitting a bottom at $1,644.54. The move saw Ethereum break past a recent price ceiling at $1,720. Technical analysis suggests that an upwards cross between the 10-day and 25-day moving averages is imminent. However, one potential hurdle for this cross will be the upcoming ceiling of 65.00 on the RSI, which is currently tracking at 62.86. If ETH/USD moves beyond this point, it is highly likely that Ethereum will be trading above $1,800.
The recent price surges in Bitcoin and Ethereum have been attributed to the U.S. Federal Reserve’s liquidity injection into the economy. The move has boosted market confidence and caused investors to flock to cryptocurrencies. Many analysts predict that Bitcoin and Ethereum will continue to rise in the coming weeks and months as market conditions remain favorable. However, caution is advised as the crypto market is known for its volatility and sudden price swings. Investors are advised to remain vigilant and carefully monitor their investments.
