Ethereum Gains Eclipse Bitcoin, Dogecoin In Broader Risk Rally: Analyst Says Charts Signal Powell's Speech Is 'So Far' Bullish

Zinger Key Points
  • Trader says Bitcoin is 'ready for the relief rally and some more upside.'
  • OANDA senior analyst says focus shifting on upcoming legislation for cryptocurrencies.
  • Strong 'bullish support' seen by Santiment leading up to next FOMC meeting.

Major coins rallied Wednesday night as the global cryptocurrency market cap rose 3.9% to $866.2 billion at 7:07 p.m. EST.

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD 4.3% 3.4% $17,166.89
Ethereum ETH/USD 6.4% 9.5% $1,295.53
Dogecoin DOGE/USD 5.3% 31.1% $0.11
Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
GMX (GMX) +18.3% $49.23
Fantom (FTM) +11.5% $0.25
Polygon (MATIC) +11.3% ​​$0.94

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Why It Matters: Bitcoin, Ethereum, and Dogecoin spiked in a broader risky asset rally after U.S. Federal Reserve Chair Jerome Powell said in a speech Wednesday that the central bank could begin easing on interest rate hikes.

“The time for moderating the pace of rate increases may come as soon as the December meeting,” Powell said. 

On the equities side, the S&P 500 and Nasdaq closed 3.1% and 4.4% higher respectively on Wednesday. U.S. stock futures were seen in the green at the time of writing.

Ethereum gains outstripped those of Bitcoin and Dogecoin on Wednesday. On a weekly basis, though, Dogecoin has shot up 31%, while Bitcoin and Ethereum have risen 3.5% and 9.2%, respectively.

Cryptocurrency trader Justin Bennett tweeted that the “price action on the chart is the ONLY thing that makes an event like Powell's speech bullish, bearish, or neutral. So far, it's bullish.”

On Ethereum, Bennett said that the second-largest coin has "clean" levels to work with. 

"Needs to hold above $1,230 to stay constructive and close above $1,285 to open up $1,340," said the trader in a tweet. 

Amsterdam-based trader Michaël van de Poppe said that Bitcoin and cryptocurrencies “are indeed ready for the relief rally and some more upside.”

OANDA senior market analyst Edward Moya said, in a note seen by Benzinga, that the focus for cryptocurrencies is shifting to coming legislation.

“The news flow has been plentiful, mostly downbeat for cryptos but the focus is shifting on the future of crypto legislation.  Pressure is growing for some clear direction on how to put guidelines to avoid another FTX moment," he said.

“Over the next couple of weeks, we should start to get an idea of how crypto legislation will look and that should ultimately be long-term positive for the cryptoverse, but it could put added strain on some struggling crypto companies or stablecoins."

Santiment said on Twitter that “We may see strong #bullish support leading up to the Dec 13-14 [FOMC] meetings.” 

The market intelligence platform was referring to the Federal Open Market Committee meeting due on Dec 13 and 14.

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Posted In: BitcoindogecoinEthereumCryptocurrencyNewsTop StoriesMarketsMoversTrading Ideas