Ethereum crossed the pysological resistance level at $2,000 two days after the retail sentiment dropped a three months low level. This sudden spike comes in the wake of a few incidents that happned in the US.
ETH crosses above 200-day MA
Ethereum (ETH) crossed above the downtrend line that has been restrticing the price movements since February of this year. Not only did ETH break above this level but it also spiked above the 200-day MA as shown in the chart. As the 200-day MA is considered the long term indicator, a price spike above this level shows that the market is bullish.
This sudden spike in ETH prices follows just a couple of days after the retailers sentiments dropped to a two month low. According to an analyst and crypto trader who goes by the pseudonym Crypto Xlarge, the market experience this sudden turbulence due to a few events that happened in the US.
Bitcoin and Ethereum surged as several bullish catalysts hit the market at the same time.
Trump’s White House meeting with crypto executives and his push for the CLARITY Act boosted optimism around clearer U.S. crypto regulation. The SEC also signaled a more crypto-friendly regulatory approach, further improving investor sentiment.
Meanwhile, the U.S. Treasury increased its long-term bond buybacks, helping improve liquidity and supporting risk assets. These developments encouraged traders to increase their exposure to BTC and ETH.
As Bitcoin started climbing, heavily positioned short sellers came under pressure.
Short liquidations then forced additional BTC purchases, creating a short-squeeze effect that accelerated the rally. With BTC breaking above $70K, Ethereum followed as the broader crypto market shifted sharply toward risk-on sentiment.
