Why is Ethereum price going up today? (Aug 23)

Ethereum price is going up today, Aug. 23, and is hovering at its all-time high, continuing a strong comeback that started in April when it bottomed at $1,383. 

Ethereum (ETH) jumped to a record high of $4,877, bringing its market capitalization to $572 billion. This article explores some of the top reasons the ETH price is soaring. 

Ethereum price is rising because of its strong technicals

The daily timeframe gives a technical reason why the Ethereum price is in a strong bullish trend. This chart shows that the coin dropped to $4,093 this week as the crypto market crashed. This was an important level as it coincided with the highest point in December last year.

Therefore, the Ethereum price jumped to a record high after completing the break-and-retest pattern, a common continuation sign. This happens when an asset breaks out and then retests the support and resistance level. It is one of the most common bullish continuation signs. 

Ethereum price also has strong technicals, including that it remains above the 50-day and 100-day moving averages. The Supertrend indicator is green, while oscillators have all pointed upwards. These indicators point to more gains, potentially to $5,000.

ETH price soared after Jerome Powell’s speech 

The other main reason why the Ethereum price is going up today is that investors cheer the rising odds that the Federal Reserve will slash interest rates in September. 

In a statement at the Jackson Hole Symposium, Powell hinted that he was concerned about the labor market after the recent nonfarm payrolls data.

The report showed that the economy added just 73,000 jobs in July while the unemployment rate rose to 4.2%. It also showed that the economy created fewer jobs than expected in the previous two months.

A change in tune by the Fed Chair would be bullish for Ethereum and other cryptocurrencies as it would help to shift assets from the low-risk bond market to the riskier ones.

Ethereum price also jumped as inflows into its exchange-traded funds rebounded. After shedding assets for four straight days, ETH ETFs added $287 million in assets on Thursday and more on Friday. Their cumulative inflows have soared to $12.4 billion, while the total assets have risen to $30.54 billion.

More data shows that the Ethereum ecosystem is doing well, with the total stablecoin supply jumping by 10% in the last 30 days to $147 billion and the total transactions rising to $880 billion in the same period. This growth has led to higher revenues for the project.