Ethereum (ETH/USD) Hits 38.2% Fibonacci Retracement – All Eyes On $2,050

The ETH/USD closed at $1,949.00, after a high of $2,031.41 and a low of $1,757.14. The ETH/USD suddenly surged above the USD 2,031 level on Wednesday after falling continuously and remaining in consolidation for more than 2 weeks.

SpaceX CEO Elon Musk Supports Ethereum (ETH/USD) at 1,735

The ETH/USD surge came on Wednesday after Tesla and SpaceX CEO Elon Musk said he owns the second-largest cryptocurrency at the B-Word conference. Following this revelation, Ethereum hit its highest level in a week, rising more than 12% on Wednesday.

Elon Musk also reiterated his support for cryptocurrencies in general, despite possible environmental risks. Musk said that as Bitcoin mining became increasingly powered by renewable energy, Tesla will once again accept bitcoin for transactions. Shiba inu SHIB price has risen.

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Musk said the only publicly traded shares he owns are in Tesla and cryptocurrencies. He said he owns some Bitcoin, Dogecoin and Ethereum. He also revealed that he is holding Bitcoin for the long term. He went on to say that if the price falls, he will lose money, but he has no intention of selling at higher prices or anything like that as he would like to see Bitcoin succeed.

The news that Tesla may start accepting Bitcoin again as the mining process has shifted to using renewable energy added strength to the leading cryptocurrency, driving the entire crypto market higher as well. ETH/USD also rose on Wednesday, following the market trend and reaching its highest level in a week.

Ethereum was bolstered by the news that Musk personally holds the cryptocurrency in his portfolio and has no plans to sell it any time soon. All of this, coupled with the recent weakness in the US dollar, has given the ETH/USD further upward momentum.

Weaker Dollar Pushes Ethereum (ETH/USD) Above USD 2,000

The US Dollar Index has fallen, reaching the level of 92.76 and further contributing to the rise in Ethereum prices as there is a negative correlation between the two. The weakness of the US dollar can be attributed to fading market sentiment on risk and easing fears about the spread of the coronavirus. Ripple (XRP price has risen.

Ethereum (ETH/USD) – Daily Outlook

The ETH/USD is trading with a bullish bias at the 2.023 level. The coin has bounced back above the support level of 1,734 double bottom. As you can see from the chart above, the ETH/USD has completed a 38.2% Fibonacci retracement at the 1,988 level. On the higher side, a crossover at this level could lead Ethereum price to the next resistance level of 2,150 and 2,390.

Both levels are expanded with 61.8% and 88% Fibonacci retracement levels. The leading indicators, such as the RSI and the MACD, support a buying trend; therefore, a breach at the 2.048 resistance is likely. Let’s keep an eye on the 2.048 level as buying can be seen above this level today. Good luck!