Ethereum price jumps above $270.00, as traders consider it as a hedge against traditional markets

  • ETH/USD has recovered from the recent lows and settled above $270.00.
  • The recent research shows that Ethereum can be used as a hedge against several traditional assets.

Ethereum (ETH) recovered from the intraday low of $260.12 and hit $272.47 during European hours. At the time of writing, ETH/USD is changing hands at $270.30, with nearly 3% of gains in recent 24 hours. 

On the intraday charts, ETH/UD reached the upper boundary of the recent consolidation channel reinforced by the upper line of 1-hour Bollinger Band at $270.95. Once it is out of the way, the upside is likely to gain traction with the next focus on the recent high of $277.39.

On the downside, the local support is created by SMA50 1-hour at $266.00. It is followed by the lower line of 1-hour Bollinger Band at $262.50 and $260.00. Critical support is located at $250 with the middle line of 4-hour Bollinger Band and SMA100 1-hour located around this area.

ETH/USD 1-hour chart

Ethereum’s long-term picture remains bullish

ETH/USD ha gained over 111% since the beginning of the day and became one of the most succesefull altcoins out of top-20. Bottomed out at $116.81 on December 18, 2019, the coin moved above $200 and now has a real chance to hit $300.00 for the first time since July 2019.

A steady flow of positive news and solid fundamentals support the coin’s recovery and attract new buyers to the market. 

According to the research conducted by San Jose State University, Ethereum has some features of a safe-haven asset and a hedge against the US stock market and gold. The experts studied intraday price movements on different markets and found out that ETH can also be a diversifier to US Dollar. 

We find that Ethereum crypto-currency can serve as an intraday hedge against the US stock market and against the gold. Also, Ethereum may serve as an intraday safe haven against gold markets. When currency markets are concerned, we document that Ethereum tend to act as a diversifier on intraday basis for the US Dollar.

This data is confirmed by increased trading activity as an average daily trading volume has increased from the long-tern $16 billion to over $25 billion.

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