Ether and bitcoin reached their highest levels in 10 days on Sunday as the market showed some signs of stabilisation.
The second largest cryptocurrency advanced as much as 5.8% to US$1 279.06 on Sunday before pulling back on Monday morning Asian time. The rally comes after the token dropped as low as $880.70 on 18 June. It appears to have found support around its 200-week moving average, which currently sits near $1 200.
Bitcoin topped out on Sunday at $21 860, after having fallen as low as $17 742.83 on 19 June. Overall crypto market capitalisation retook the $1-trillion level on Saturday, according to data from CoinGecko, though it was sitting a bit below that as of 9.20am Singapore time on Monday.
Ether “is leading the way following sizeable short liquidations”, Fundstrat said of the crypto rally in a note on Friday. Data from CoinGlass shows there were about $60-million of short liquidations in ether on Friday, the most in five days.
Cryptocurrencies have suffered this year amid US Federal Reserve rate hikes and stubbornly high inflation. Ether is still down more than 60% this year, even after rallying from its extreme lows.
A major options expiration on Friday had been watched as a potential source of volatility. However, “short risk cleared surprisingly efficiently” for ether amid “perhaps unexpected stability”, Genesis Trading’s Ainsley To, Gordon Grant and Noelle Acheson wrote in a note. — (c) 2022 Bloomberg LP