Ether holds support
Ethereum, the second-largest cryptocurrency by market capitalization, is holding breakout support at around $3,000 and is up about 4% over the past day. The cryptocurrency has been resolving extreme overbought levels since its Aug. 8 breakout, which usually precedes a period of stabilization.
Buyers will probably stay active at around the $3,000 support level as short-term momentum improves. Ethereum will need to break above immediate resistance at $3,400 in order to yield an upside target to the all-time high of around $4,000.
The stablecoin supply on exchanges has topped $19 billion, according to CryptoQuant. “There is more dry powder in the system now that could flow into bitcoin.” CryptoQuant analyst Jan Wuestenfeld wrote about it.
The total market cap of stablecoins has exceeded $120 billion, which is more than double the number in March. Based on CoinMarketCap data.
“This is likely driven by increased MN (Market Neutral) fund flows and more cash on the sidelines, looking for yield.” Rahul Rai, co-head of market neutral at crypto investment firm BlockTower, posted on Twitter.