Ethereum Slowly Recovers and Trades Near Crucial Resistance
Ethereum (ETH) is somehow rebounding and trading towards the $120 resistance against the U.S. dollar. ETH price might sharply surge higher once there is a clear break over $120 and $124.
After landing above the $100 level, ETH began a firm gain against the U.S. dollar. Its price surpassed the $110 and $112 resistance level to start a decent recovery.
The bulls successfully push the price above the $125 level. However, Ethereum remains under the 100 hourly moving average. In the outset, the price is still playing with the 23.6% Fib retracement level of the previous fall from the $134 swing high to $101 low.
Moreover, two key bearish trend lines are acting as a barrier near $119 to $120 on the hourly chart of ETH/USD. With this, it looks like ETH is experiencing a strong hurdle near the $119 and $120 levels.
Then, a quick resistance above the trend line is almost in the $122 level, since it is near to the 61.8% Fib retracement level of the last drop from the $134 swing high to $101 low.
Ethereum’s next kay resistance is close to the $124 level and the 100 hourly simple moving average. Thus, a successful break over the $120 and $124 resistance levels could open the doors for a powerful upward move in the near term. Also, the next hurdle for the bulls is close to the $134 and $142 levels.
On the other hand, if Ethereum fails to clear both the trend line and the $120 resistance, it might begin a new decline. The initial support is near the $115 level, under which the bears will possibly take control.
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BlockFi To Raise Interest Rates on BTC and ETH
Meanwhile, on April 1, BlockFi will start to increase the interest account rates on Bitcoin (BTC) and Ethereum.
Based on VEO Zac Prince, BlockFi users with BTC between 0 to 55 now will obtain a 6% annual percentage yield (APY). Then, people holding up to 500 EH will earn a 4.5% APY. Stablecoins such as Gemini Dollar (GUSD) and USD Coin (USDC), will still be at 8.6% APY interest rates.
In the latest Bitcoin rash by the coronavirus restrictions hurting markets, BlockFi has shown very limited liquidity. The lending company stated, “they did not liquidate USD loan client collateral below a price of $4,500, despite the market reaching lows of $3,800.”
So, the decision to increase interest rates became unexpected when considering the reaction of traditional financial institutions to these changes in the market. And this occurred despite the U.S. Federal Reserve’s interest rate cut to 0%.
But still, Prince views this as a hope in the crypto market. He said that BlockFi has remained in its perfect performance with zero losses reported.
The CEO cited, “Our balance sheet is stronger than ever, and shifts in the institutional lending markets have created opportunities that expand our margin.”
After that, Prince continued by describing how BlockFi has processed the most massive number and volume of daily withdrawals and deposits in the platform’s history. Also, tens of millions in trading volume have gone on without interruption as a result of the BlockFi team’s efforts.
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