Ethereum price jumped on Friday, hovering slightly below the important level of $1,900 as the approval of the US debt ceiling bill increased bullish sentiment in markets. At the time of writing, Ethereum was trading 1.48% higher at $1,888.86, surpassing the 50-day exponential moving average at $1,845. The asset’s total market cap, as well as its total volume, has increased over the last day.
The crypto market was in the green on Friday as investors digested the latest news on the US debt ceiling bill. The global crypto market cap increased by nearly 1% over the past 24 hours to $1.14 trillion. Even so, the total crypto market volume, as well as Bitcoin’s dominance, inched lower over the same period.
Ethereum price jumped to an intraday high of $1,900 on Friday before pulling back slightly amid increased bullish sentiment and a weaker US dollar. The US Senate passed the bill to suspend the US debt ceiling deal to January 1, 2025, on Thursday, a few days before the US government ran out of cash. The US government will now be able to keep borrowing money to pay its bills.
The dollar index, which measures the greenback’s performance against six major currencies, has dropped by nearly 1% this week, its biggest weekly loss since mid-January. The passage of the US debt ceiling deal removed a pillar of support of the US dollar, which had been a key beneficiary because of its safe-haven status.
With the debt ceiling now in the rear-view mirror, the focus will be on the central banks and economic data. Data released on Friday shows that Nonfarm payrolls grew by 339,000 in May, beating analysts’ expectations and marking the 29th straight month of positive job growth.
Traders have ramped up bets that the Federal Reserve will be pausing its interest rate hike in June but does not rule out further hikes later in the summer. Philadelphia Fed President Patrick Harker said on Thursday, “It is time to at least hit the stop button for one meeting and see how it goes”.
The daily chart shows that the Ethereum price has been moving sideways for the past few days. Even so, the digital asset has managed to move above the 50-day and 200-day exponential moving averages. It has also moved above the 100-day and 200-day simple moving averages.
Its Relative Strength Index (RSI) has moved up the signal line into the neutral zone, indicating an increase in buying pressure. The Moving Average Convergence Divergence (MACD) indicator also suggests a bullish uptrend.
Therefore, the Ethereum price is likely to jump higher in the ensuing sessions as buyers eye the important resistance level of $2,000. A flip above this level might give bulls enough momentum to push the price higher to this year’s high at $2,145. On the other hand, a move below the crucial level of $1,845 will invalidate this view.
