Ethereum breaks out of a month-long range

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Ethereum broke out of the range today and is currently trading at $1,450. Strong stock indexes and a weak dollar may have set the stage for a coin toss out. Ethereum's devaluation may also have an impact on the financial system.

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Ethereum briefly touched $1,500 today, breaking out of the tight range it has been trading in since mid-September.

Preparing the stage for the rally

Ethereum is picking up some tailwinds.

The second-largest cryptocurrency is currently trading at $1,450, up 8.5 percent in the past 24 hours, it said. CoinGecko. The coin has been stuck in a range between roughly $1,405 and $1,240 for over a month now. Although it is too early to tell if ETH has broken out of that range for some time, it is the first time the currency has visited these price levels since the historic consolidation on September 15th.

ETH's launch is likely due to broader market conditions. The S&P 500, Nasdaq and Dow Jones were all in the green for a third day in a row, rising 1.32%, 1.86% and 0.86% respectively. The crypto market has shown a close correlation with the stock market for most of the year; Last month, Bitcoin and Ethereum became more resilient as all three major US equity indices hit new lows in mid-October, stubbornly locked in their ranges.

In particular, the US dollar seems to be strengthening now. After reaching a high of 114.6 points on September 27, DXY is now trading at 110.9 points and may be showing signs of a reversal. The continued strength of the US dollar during the year was largely countered by equities, cryptocurrencies and foreign currencies such as the euro, the British pound and the Japanese yen. It may be declining now after the Federal Reserve He showed. Recent signs of slowing rate hikes.

However, it's not just macro factors driving Ethereum forward. Open interest for ETH has also increased dramatically over the past few hours. According to crypto research platform Delphi Digital, there were nearly $500 million in ETH futures contracts. i bought Within an hour on Coinbase, that instantly pushed the price from $1,350 to $1,380.

Finally, ETH may benefit from a decrease in its total supply. After transitioning to Proof-of-Stake, Ethereum awaited the release of ETH Swingwith data Ultrasound. Money On October 8, the total supply of ETH increased by 13,086 tokens in 23 days. But the high activity on the chain led to the blockchain monetary policy to be deflationary, and the total supply of ETH is now close to what it was on September 15th.

Disclaimer: At the time of writing this article, the author of this article owns BTC, ETH and many other crypto assets.

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