Ethereum News: After falling to $1,706 in a 2-week downtrend, Ethereum gained an upward momentum with an 11% rise yesterday. Rising up to $2035, ETH was priced just under $2,000 at the time of writing.
SpaceX CEO Elon Musk threw support for Ethereum at $ 1,700
The spike in ETH/USD comes after Tesla and SpaceX CEO Elon Musk said it has the second-largest cryptocurrency during the B-Word conference. Following this announcement, Ethereum rose 11% on Wednesday, hitting a one-week high.
Elon Musk reiterated his support for cryptocurrencies in general, despite the potential risks to the environment. Musk said that as Bitcoin mining is increasingly powered by renewable energy, Tesla will once again accept bitcoin for transactions.
Musk said that the only publicly traded stocks he owns are in Tesla and cryptocurrencies. He also expressed for the first time that he holds some Bitcoin, Dogecoin and Ethereum. He also revealed that he has been holding Bitcoin for a long time. He also said that he will lose money if the price drops, but he has no intention of selling anything as he wants to see Bitcoin succeed.
The news that Tesla may start accepting Bitcoin once again as the mining process shifts towards renewable energy use has given power to the leading cryptocurrency and boosted the entire cryptocurrency market even higher. ETH/USD also followed the market trend and reached a one-week high.
Ethereum was bolstered by the news that Musk personally holds the cryptocurrency in his portfolio and is not considering selling it anytime soon. All this combined with the recent weakness of the US dollar has given ETH/USD upside momentum.
Can Weak Dollar push Ethereum back to $2,000 levels?
The US dollar Index fell, reaching 92.76, further amplifying gains in Ethereum prices as there is a negative correlation between the two. The weakness in the US dollar can be attributed to faded risk aversion market sentiment and waning fears about the spread of the coronavirus.
Ethereum daily chart
ETH/USD is trading with a bullish bias at 2.023. The coin broke above the 1.734 double-bottom support level. As you can see in the chart above, ETH/USD completed the 38.2% Fibonacci retracement at the 1.988 level. On the upside, a crossover at this level could lead Ethereum price to the next 2.150 and 2.390 resistance levels.
Both of these levels were extended by the 61.8% and 88% Fibonacci retracement levels. Leading indicators like RSI and MACD support a buying trend; therefore, a breakout of 2.048 resistance is possible. The 2.048 level is very important, considering the possibility of buying above this level today.