Ethereum moved briefly above the $1,900 level on Tuesday, as the U.S. dollar weakened versus several G7 currencies. The biggest fall came versus the British pound, with USD/GBP hitting a 15-month low. Bitcoin also rose higher, climbing past $31,000 earlier in the day.
BTC/USD surged to an intraday peak of $31,026.08 earlier in today’s session, which comes after dropping to a low of $30,156.54 on Monday.
Price has since slipped, dropping as volatility in the market remains high ahead of tomorrow’s inflation report from the United States.
Looking at the chart, the decline came as the relative strength index (RSI) failed to jump past a ceiling at 61.00.
At the time of writing, price strength is tracking at 58.96, with the next visible point of support at 55.00.
The 10-day (red) moving average has edged even closer to its 25-day (blue) counterpart, increasing the chances of a downturn.
After hitting a low of $1,860.62 to start the week, ETH/USD rallied to a high of $1,905.46 on Tuesday.
As of writing, ETH is trading at $1,870.15, with the RSI at a reading of 50.43, which is marginally below a ceiling at 51.00.
In the event the index is able to rise above the 51.00 zone, there is a strong possibility that ethereum will be back over $1,900.
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What is behind today’s weakness in USD? Leave your thoughts in the comments below.