Ethereum price staged a strong recovery over the weekend, wiping out its previous losses after jumping by more than 11%. ETH has moved past the crucial level of $1,500 and is currently trading at 1,588.98. The altcoin’s total market cap has jumped by more than 8% over the past 24 hours, while the total volume of the coin traded increased by nearly 37%.
Ethereum price staged a strong comeback during the weekend, breaking its 5-day consecutive downtrend. Ethereum’s recovery is in line with the overall recovery in the crypto market. The global crypto market cap has jumped past the $1 trillion level and currently sits at $1.02 trillion. The total crypto market volume has increased by more than 31% over the last day.
Last week was a tough week for the crypto community. The Silvergate crisis, as well as fears about potential further interest rate hikes, had been weighing on the crypto market in the past week. Silvergate recently announced its plans to wind down its operations and liquidate its bank, staging the biggest hit on the crypto market after FTX’s collapse and Terra’s LUNA crash.
Notably, Fed chair Jerome Powell warned that the US central bank is likely to impose further interest rate hikes to higher levels than previously anticipated. The raising of interest rates over the past year has heavily weighed on risk assets such as cryptocurrencies and stocks.
Binance, the world’s largest cryptocurrency exchange, has delivered a $1 billion blow to crypto bears, following its announcement about the conversion of the remaining funds from its Industry Recovery Initiative from BUSD stablecoin. In his announcement, Binance CEO Changpeng Zhao said that the funds will be converted to BTC, ETH, and BNB.
The announcement by Binance is a clear indication of the company’s belief in the future growth of the cryptocurrency market. Binance’s move saw the prices of BTC, ETH, and BNB surge, leading to a spike in the overall crypto market performance.
Ethereum price was trading slightly higher on Monday, extending the gains made over the weekend. The largest altcoin by market cap has moved above the crucial support level of $1,500, breaking above its bearish trend line. Even so, the digital asset remains slightly below the 25-day and 50-day moving averages, while its RSI hovers around the neutral zone.
Therefore, while the ETH price outlook remains cautiously bullish, the next major resistance level will be $1,635. On the other hand, the next major support levels will be $1,560 and $1,500.