Major cryptocurrencies experienced gains on Wednesday evening, aligning with the notable surge in traditional markets.
Bitcoin surged in Wednesday afternoon trading, reaching a peak of over $26,600. This sets a new high for the week, as the cryptocurrency market begins to recover from the losses experienced in the previous Thursday’s dip.
In addition, Solana’s SOL, a Layer 1 blockchain, experienced a notable increase of almost 7% during the day. This surge came as Shopify, the popular webshop platform, integrated Solana Pay. This integration enables customers to make payments using the USDC stablecoin.
Currently, the global crypto market capitalization stands at $1.06 trillion, a 1.44% increase in the last day.
Stocks closed higher on Wednesday as Wall Street eagerly anticipated the latest quarterly figures from Nvidia, the chipmaker that has soared in popularity due to the artificial intelligence trend in the financial industry. Investor sentiment was further boosted by a decline in yields. The S&P 500 saw a strong 1.1% gain, marking its best daily performance since June 30. Additionally, the tech-heavy Nasdaq Composite rose by 1.6%.
Crypto analyst Michael Van De Poppe observed that Ethereum experienced a significant dip toward its cycle low in September 2019, which coincided with the eight-month timeframe leading up to the Bitcoin halving. Fast forward to 2023, and it appears that Ethereum is once again undergoing a similar downturn, aligning with the eight-month period before its own halving.
In 2019, #Ethereum dipped towards the cycle low in September ’19. Eight months prior to the #Bitcoin halving.
In 2023, #Ethereum seems to be making the low again eight months prior to the halving. pic.twitter.com/UG28O8EDtg
— Michaël van de Poppe (@CryptoMichNL) August 23, 2023
Crypto analyst Benjamin Cowen believes that Ethereum is poised for a significant drop before experiencing a resurgence and reaching new all-time highs.
Cowen reiterates his theory that ETH will need to return to its “home” on the fair-value logarithmic regression trendline. He points out that during the last cycle in 2020, Ethereum plummeted 33% below this band. Consequently, Cowen suggests that a favorable accumulation range for Ethereum would fall between the price range of $400 and $600.
Produced in association with Benzinga
