Updated February 27th, 2024 at 12:13 IST

Ethereum drives crypto market with 2.5% surge, consolidates above $3,000

Following a robust two-week surge, Bitcoin momentarily halts near $52,000, buoyed by robust stock markets, experts suggest.

Reported by: Anirudh Trivedi
Ethereum | Image:Unsplash
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Crypto market overview: Ethereum, the second largest cryptocurrency by market capitalisation, is leading the cryptocurrency market with close to 2.5 per cent gains in the last 24 hours. Bitcoin, down 0.5 per cent since yesterday, has recorded a 15.5 per cent decline in its trading volume, however, experts suggest that the dip is driven by strong outflows from Grayscale Bitcoin ETFs. 

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The Crypto Fear and Greed Index also dipped two points below but continued to remain in the Greed section with 72 points in the index. 

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Image credit: Alternative.me

While talking about the crypto market movement in the last 24 hours, CoinDCX Research Team said, “In the last 24 hours, the crypto market showed a slight bearish sentiment with the first net outflow from BTC ETF since January 25, 2024, signalling bearishness. Additionally, funding rates were not favourable for bulls.” 

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“Technically, BTC closed in the red but stayed within its range, with local support around $50,600 and resistance at $52,500. Meanwhile, ETH remained relatively stable, hovering between $2,900 and $3,000, with local support at $2,880 and resistance at $3,030,” added CoinDCX. 

Underlining the role of Bitcoin inflows on price charts, Rajagopal Menon, Vice President, WazirX said, “Following a robust two-week surge, Bitcoin momentarily halts near $52,000, buoyed by robust stock markets, an imminent halving event, and substantial inflows into spot Bitcoin ETFs. Notably, Grayscale Bitcoin Trust outflows hit a minimum of $44 million on February 24. Bitcoin's consolidation, ranging between $50,500 support and $53,000 resistance, showcases positive signs, supported by ascending moving averages and the RSI approaching overbought levels, favouring bulls. A breakthrough above the $53,000 level may fuel a rally toward $60,000, while a decline below $50,500 could tip the advantage in favour of bears.” 

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Parth Chaturvedi, Investments Lead, CoinSwitch Ventures said, “BTC briefly dipped below $51,000 on Saturday before regaining its rangebound performance around $51,500. BTC seems to be going through a cool-off period currently. With investor sentiment still strong, many are expecting a positive price action. ETH reclaimed the $3,000 level for the second time in February. The recent upward movements have also elevated ETH’s Relative Strength Index (RSI) while growing its Total Supply in Profit; around 1 million ETH in profit over the weekend.” 

Shivam Thakral, CEO of BuyUcoin, said, “Bitcoin has experienced consolidation over the last few weeks by trading under the $50,000-$53000 range. After rallying by around 36 per cent since the start of 2024, Bitcoin has failed to breach the $53,000 resistance. A breakout above this level would push the price of the biggest cryptocurrency up to $60,000 in the near future.” 

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Vikram Subburaj, CEO, Giottus shared the key upside targets for altcoins in the short term. Subburaj said, “Ethereum is having a strong run even as Bitcoin stays robust above $51,000. By breaching $3,100 intra-day, ETH has registered gains of 33 per cent in February and has the potential to run towards $3,300 in the upcoming week. Crypto market cap is within touching distance of $2 trillion, a significant level signalling adoption. Key upside targets for altcoins: Ethereum ($3,150), BNB ($400), Solana ($106), Cardano ($0.62), and Avalanche ($38).” 

In positive news, Reddit disclosed its investment of excess cash into Bitcoin and Ethereum, hinting at potential future investments in these cryptocurrencies. 

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Published February 26th, 2024 at 12:33 IST