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Why is Ethereum (ETH) price up today?

source-logo  cointelegraph.com 24 May 2023 07:41, UTC

Ether (ETH) price jumped nearly 3% to around $1,870, its highest level in over a week on may 23. The ETH/USD pair slightly outperformed the wider cryptocurrency market, which rose 2.5% above a total market capitalization of $1.1 trillion.

Ethereum price jumps after Hong Kong's crypto decision

ETH price gains appeared after the recent Hong Kong decision to allow retail traders to trade cryptocurrencies. Approved tokens on regulated crypto exchanges will need a 12-month track record, which raises ETH's listing prospects.

ETH/USD four-hour price chart. Source: TradingView

ETH's price jump accompanied a rise in trading volumes on the four-hour chart. Furthermore, the price closed above its key exponential moving averages (EMA) — the 50-4H EMA (red wave) and the 200-4H EMA (blue wave).

Both metrics indicate a short-term bullish outlook in the market.

ETH price technical bounce

Furthermore, Ether's price rise on May 23 started near a long-standing ascending trendline support. This trendline has capped ETH's downside attempts since November 2022 and has even prompted bullish reversals with recoveries exceeding 50%.

ETH/USD daily price chart. Source: TradingView

As a result of this trendline, Ethereum could rally toward $2,000 in June, a psychological resistance level, particularly if the price decisively closes above its short-term descending trendline resistance highlighted in the chart above.

Rate pause hopes boost Ethereum

Currently, the Ethereum market remains exposed to macroeconomic indicators, mainly the Federal Reserve's upcoming interest rate decision. The widely-tracked CME FedWatch tool sees a 75% probability of a pause in the Fed's rate hike after their June 14 meeting.

Target rate probabilities for June 14. 2023 Fed meeting. Source: CME

Theoretically, a rate pause may prove to be a short-term bullish catalyst for Ethereum, raising its prospects of hitting $2,000 further by June's end.

Related: The Ethereum Foundation just sold $30M in Ether — But will ETH price fall this time?

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.