Ethereum destroys $3,000 psychological barrier

Ethereum has increased by more than 4% in the last day and 21% over the last week. For the first time in over three months, it is currently trading above $3,000. Given the Fed’s 25 basis point rate cut and Donald Trump’s win in the presidential election.

The super altcoin appeals to investors once again. The Fed lowered them by 25 basis points on Thursday after lowering interest rates by 50 basis points in September bossing appetite for altcoins.

The 100-day Simple Moving Average (SMA) is tested by ETH on a daily chart close to the psychological level of $3,000. Ethereum may rise to test the resistance level around $3,366 if it crosses above this SMA. However, it might lose the $2,820 support level if is not maintained for the mid-term.

Nonetheless, demand for ETH may increase in the upcoming weeks due to the current downward trend in interest rates and the possibility that Donald Trump’s win will guarantee a clear regulatory path for decentralized finance (DeFi).

Ethereum Foundation, which contributes to the development of the Ethereum blockchain, also published a report indicating that its treasury balance has fallen by 39%, from $1.06 billion in March 2022 to $970 million on October 31.

The crypto market looks different, with many altcoins showing remarkable gains after Bitcoin led the pack in midweek gains. Among them is Ethereum, which woke up earlier this week.

Binance Coin, which lost to Solana as the fourth-largest cryptocurrency, has risen 6% and is currently trading at $630. The other noteworthy winners among the larger-cap alts are Avalanche, Chainlink, and NEAR Protocol. Investors preferred traditional bonds over the leading altcoin due to Ethereum’s staking yield, which has remained at 4% for the last two years, below the previous Fed benchmark rate of 5%.