The Ethereum (ETH/USD) and Ethereum Classic (ETC/USD) rebound accelerated as cryptocurrency volume rebounded. The two coins rose to $2,350 and $53, bringing their total market capitalisation to more than $6.8 billion and $274 billion, respectively.
Cryptocurrency prices rebounds
The price action of Ethereum and Ethereum Classic is tied to the overall performance of Bitcoin, which emerged from below $30,000 last week to almost $40,000. This performance happened after rumours emerged that Amazon would start accepting Bitcoin later this year.
If confirmed, this will be a significant move considering that most Americans use the platform every day. The news follows last week’s announcement by Elon Musk that Tesla would restart accepting the coin once the emissions issue improves.
Ethereum price is also rising because of the comeback of volume in centralised exchanges like Coinbase and Binance and decentralised exchanges like Uniswap and PancakeSwap. The surging volume in DEXEs is notable since most of the decentralized platforms are built using Ethereum’s technology.
Further, the total value locked (TVL) in DeFi has also risen to more than $64 billion. This is also a major thing since the biggest platforms like Aave, Uniswap, Maker, and Compound are created using Ether’s technology.
Ethereum Classic price, on the other hand, has risen because of its close correlation with Ethereum since the two have a history. Many retail traders buy Ethereum Classic as a proxy for Ether.
The two coins have also risen because of the falling bond yields. The 10-year yield has declined to 1.23%, signalling that the Federal Reserve will not sound hawkish any time soon. Furthermore, the number of Covid cases has jumped, putting the recovery at risk.
Ethereum price prediction
Ethereum price chart
The daily chart shows that the Ethereum price formed a bottom at $1,702. During the weekend, the coin managed to move above the descending trendline shown in blue. To some extent, this price action invalidated the descending triangle pattern. Further, the coin has moved above the 50-day and 25-day moving averages. Therefore, this could be the start of a new bullish trend considering that volume is rising. If this happens, the next key level to watch will be $3,000.
Ethereum Classic price prediction
Ethereum Classic price
The 1D chart shows that the ETC price has bounced back in the past few days. It is about 67% above the lowest level in May this year. Along the way, it has formed what looks like an inverted head and shoulders pattern. It has also moved above the short and longer moving averages. Therefore, the coin may keep rising as bulls target the key resistance at $70.