Ethereum (ETH) price continues to rise, reaching a record level of $4,877. This article explores the key factors contributing to this increase.
Technical Indicators Driving Ethereum Price Rise
Technical analysis indicates that the Ethereum price is in a strong bullish trend. This week, the price dropped to $4,093, an important support level coinciding with last December's maximum.
Following this, Ethereum broke out and retested key support and resistance levels, a common bullish continuation sign. Current technical indicators show the asset remains above the 50-day and 100-day moving averages, suggesting potential further price gains to $5,000.
Investor Reaction to Jerome Powell's Speech
One of the primary reasons for the increase in Ethereum's price is the sentiment surrounding Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole Symposium. Powell expressed concerns about the labor market and hinted at potential interest rate cuts in September, which could benefit cryptocurrencies.
Labor market conditions described in the recent employment report revealed that only 73,000 jobs were added in July and the unemployment rate rose to 4.2%.
General Trends in the Ethereum Ecosystem
Additional data indicates positive dynamics within the Ethereum ecosystem. The total stablecoin supply increased by 10% over the last month, reaching $147 billion, while the overall transaction volume rose to $880 billion. This growth signals an increase in project revenues and activity.
In conclusion, Ethereum's price is setting new records amid a positive market outlook and renewed investor interest. Current economic conditions and strong technical indicators provide an optimistic forecast for further growth.
