The price of Ethereum rebounded on Monday as demand for cryptocurrencies picked up. ETH is trading at $ 4,335, about 10% above the weekend low. The coin is slightly below this month’s high of $ 4,877. Its market capitalization is currently $ 514 billion.
Ethereum, like all cryptocurrencies, fell sharply on Friday as global tensions rose. The part crashed by more than 5%. This happened as other assets like stocks and commodities collapsed. For example, the price of crude oil fell more than 10% while the Dow Jones lost more than 900 points.
There are two main reasons why the price of Ethereum is rebounding today. First, analysts believe the impacts of the new variant of Covid-19 will be relatively muted, as will Delta. Second, the new variant, if it turns out to be more dangerous, may result in a postponement of tightening by the Federal Reserve and other central banks.
Third, the price of ETH is also rising simply because other coins and assets have rebounded. Bitcoin has risen over 5.4% in the past 24 hours. Other coins like Ripple and Solana also surged, pushing the total market cap of all cryptocurrencies to over $ 2.7 trillion. Finally, the Ethereum price is doing well ahead of the Santa Claus Rally.
Ethereum Price Prediction
The daily chart shows that the price of ETH has stayed in a narrow range recently. This range is indicated with the red triangle. It also hovers near the 23.6% Fibonacci retracement level. Also, it slightly exceeded the 25 and 50 day moving averages.
Therefore, while it is too early to tell, there is a possibility that the coin will rebound as December approaches. Historically, cryptocurrencies tend to do well in December and then decline in January. If this happens, it is likely that the price of Ethereum will rebound and test the key resistance again at $ 4,877, which is around 14% above the current level.