Ethereum rises to the highest since August in a 5% rally

The drop in the US dollar today on soft job openings data has led to some wonky market moves, including Ethereum. The Nasdaq and broad stock indexes are down around 0.7% but crypto and gold are surging.

Leading the pack is ethereum, which is up nearly 5% to the highest levels since August 2022 in something of a breakout.

Ethereum Rises in Latest Session

Crypto was a great asset in Q1 and that’s continued as the calendar turns into Q2 but it’s largely been carried by bitcoin, which is now 45% of the market cap of the cryptosphere.

What’s most interesting to me today is the divergence between stocks and crypto. They had been in lockstep for months but diverged on the bank troubles in the US and that has continued even with the banking worries ebbing. Still, damage may have been done and it could offer lasting momentum for crypto.

Alternatively, the correlation signals could simply be skewed by quarter-end flows and that crypto is simply leading US equities, which will start to rally soon. I’m sypathetic to that idea because softening recent data means the Fed is close to the end of the rate hikking cycle. The market is pricing in a 50/50 chance of a hike in May and nothing beyond that.

Finally, none of this can be separated from the nonsense going on in Dogecoin as Elon Musk replaces the twitter logo with a Shiba Inu. Let’s hope that’s not genesis of this rally.

This article was written by Adam Button at Source