Market Wrap: Bitcoin, Ether Recover From Midday Market Sell-Off as the DOGE Abides

Wednesday 05 May 2021, 7:23 AM AEST - 1 week ago

Bitcoin and ether got swept up in a crypto market sell-off Tuesday, along with U.S. stocks, before recovering later in the day. Earlier, ether and dogecoin touched new all-time high prices.

U.S. Treasury Secretary Janet Yellen was a catalyst for the midday sell-off after she warned that interest rates may need to rise. Some traders apparently sold on concerns the cheap money era might not last forever.

Ethers hourly price chart on Coinbase since May 1.

Ether was trading around $3,369 as of 21:00 UTC (4:00 p.m. ET), up 3.4% over the prior 24 hours after falling to as low as $3,168 a few hours earlier.

The second-largest cryptocurrency by market capitalization had hit a record high earlier on Tuesday, surging to $3,530 around 14:30 UTC (9:30 a.m. ET). That is over $200 more than the previous record, set Monday, of $3,300. ETH is above the 10-hour and the 50-hour moving averages on the hourly chart, a bullish signal for market technicians.

There seems to be some fascination among ether traders with the $3,000 level, noted Alessandro Andreotti, a trader in the over-the-counter crypto market.

ETH has taken the spotlight for shattering the $3,000 barrier, he said.

In addition to record high prices, ethers volumes are also hitting records. In fact, according to data from CoinDesk Research, ethers exchange volume was higher than that of bitcoin to start the week. On Monday, spot exchange volume for ether tallied $61 billion, with the spot BTC market changing hands at $52 billion.

Bitcoin (black) and ether (red) volumes on major spot exchanges in 2021.

Rich Rosenblum, co-founder of crypto market maker GSR, says ether and bitcoin are now behaving as very separate assets, which normally isnt the case.

Theres a disconnect between BTC and ETH, Rosenblum told CoinDesk.

This disconnect could lead to ether heading up further, according to Nick Spanos, co-founder of decentralized finance startup Zap Protocol.

From the pace ETH has gathered in recent days, its continued growth path is certain, and levels above $5,000″ represent the n ...

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