Why Is Ethereum Up 10% Today? Find Out Inside

After a severe crash over the past 48 hours, the crypto market, led by Bitcoin (BTC) and Ethereum (ETH), rebounded strongly today. The total crypto market cap increased by about 5%, surpassing $2 trillion during the early Asian session on Tuesday.

Ethereum saw a notable recovery, bouncing back from a crucial support level of around $2,171. It rose more than 10% to reach a daily high of about $2,547. Despite this rebound, the crypto market experienced significant volatility, resulting in approximately $633 million being liquidated in the past 24 hours.

Ethereum’s Fear and Greed Index Drops, but Whale Activity Signals Optimism

As the crypto market crashed alongside major global stock indexes on Monday, Ethereum’s fear and greed index plummeted to 17%, indicating extreme fear of further declines.

Source: X

Despite this, on-chain data shows that whale investors have become more aggressive, seeing the downturn as an opportunity. For example, a whale withdrew 16,236 Ether, worth about $40 million, from the HTX exchange.

Source: X

Looking ahead, the crypto market is expected to maintain a bullish outlook in the fourth quarter, following a turbulent August and potentially September. Additionally, US-based spot Ether ETFs saw a net cash inflow of about $1.64 million on Monday, driven by VanEck’s ETHV and Fidelity’s FETH.

Ethereum Set to Hit All-Time High: Technical and Fundamental Analysis

From a technical standpoint, Ethereum’s price against the US dollar is well-positioned to revisit its all-time high in the near term, supported by strong fundamentals.

The large-cap altcoin, with a fully diluted valuation of about $302 billion, has been consistently forming macro higher highs and higher lows. These patterns are typical of a rising market and suggest that Ethereum could continue to gain momentum.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

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