On Tuesday, Ether (ETH) experienced a bullish cut and drove the price to an all-time high at $ 1,428.
While the move may have been technical, the fundamentals for Etheruem continue to improve as less than a month after launch it now has $ 3.8 billion worth of ETH locked up on the Eth2 blockchain.
The rapid rise in price has clearly attracted the attention of pro traders but Cointelegraph analyst Marcel Pechman warns that a large rise in short positions is accompanying Ether’s rise to a new high.
Ether’s break to a new high had little effect on Bitcoin’s price and critical comments from former US Federal Reserve chairman Janet Yellen appear to have had a negative impact on the broader market today.
Yellen, who has been nominated as President-Elect Biden’s Treasury Secretary, said cryptocurrencies are used “primarily for illegal financing.” He made the comments during a hearing with the Sentate Finance Committee and also advocated a major fiscal stimulus by telling Congress to “act big” when it comes to assisting for the sick US economy.
Institutions are still bullish
Despite today’s slight correction, institutional investors are still bullish on Bitcoin’s long-term outlook. A recent projection by hedge fund Vailshire Capital Management called for an “impending breakout” and PlanB, the creator of the popular Stock-to-Flow model, has predicted that Bitcoin’s price could close the month near $ 48,000.
Unlike the crypto market, traditional markets ended the day with strength as Yellen’s call for additional economic stimulus was viewed positively by Wall Street. The S&P 500, Dow and NASDAQ all finished the trading day off strongly following Yellen’s comments, closing up 0.81%, 0.38%, and 1.5% respectively.
Despite the negative views expressed by Yellen, positive developments for several blockchain projects helped drive altcoin prices higher.
Enjin’s price (ENJ) increased 71% after the project was legally authorized for trade by the Japan Virtual Currency Exchange Association (JVCEA). Aside from Ether (ETH), the 20 best-performing coins over the last 24 hours were Bitcoin Cash (BCH), up 7.46% and trading at $ 546.
The overall cap of the cryptocurrency market is now $ 1.046 trillion and Bitcoin’s dominance rate is 65%.