The Ethereum (CRYPTO: ETH) price is rocketing.
Ethereum is currently trading for US$1,613 (AU$2,303), up 12% since this time yesterday.
Over the past 24 hours, the worldâs No. 2 crypto has traded as high as US$1,637 and as low as US$1,424, according to data from CoinMarketCap.
The soaring Ethereum price has lifted the altcoinâs total market valuation up to US$197 billion. Though itâs worth noting that even with the latest leg up, the price remains down 67% from the 16 November all-time highs of US$4,892.
Whatâs lifting the Ethereum price?
Itâs not just the Ethereum price thatâs off to the races today.
Of the top 100 cryptos only one â TerraClassic (CRYPTO: USD) â is in the red over the past 24 hours at the time of writing.
The broad rally follows in the footsteps of a stellar session on the tech-heavy Nasdaq Composite (NASDAQ: .IXIC) yesterday (overnight Aussie time), which closed up 4.1%.
Here in Australia, investor risk appetite also looks to have been spurred, with the S&P/ASX All Technology Index (ASX: XTX) up 1.2%, having earlier posted gains of 3.5%.
And if 2022 has demonstrated anything in the world of cryptos, itâs that theyâve been moving closely in line with other risk assets, like high-growth tech shares.
âCrypto markets are very sensitive to US markets, in particular to monetary policy decisions from the Fed to combat rising inflation,â said eToroâs market analyst and crypto expert Simon Peters.
âThe raising of interest rates and rising bond yields have affected US equity valuations and, by extension, crypto markets in recent months.â
Why are risk assets rallying?
If the Ethereum price is shooting higher alongside a broader rally in risk assets, that begs the question, why are risk assets rallying?
The answer lies with the US Federal Reserveâs 0.75% interest rate hike yesterday, the second consecutive outsized rate rise.
While rate increases often depress risk assets, investor sentiment was lifted by comments from Fed chair Jerome Powell, indicating that the pace of future rate hikes from the central bank may soften.
The post The Ethereum price just shot up 12%. Here’s why appeared first on The Motley Fool Australia.
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More reading
- Bitcoin or Cardano: which crypto is most widely held among Aussies in 2022?
- Why is the Solana price sinking today?
- Why top cryptocurrencies Bitcoin, Ethereum, and Dogecoin are slumping today
- Why Bitcoin, Ethereum, and Shiba Inu are falling today
- Can Ethereum reach $10,000?
Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Ethereum. The Motley Fool Australia has positions in and has recommended Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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