 ▲ Ethereum (ETH) |
Amid a sharp rebound across macro assets, Ethereum reacted like a beta play, surging more than 12% in a single day and once again underscoring its character as an interest-rate- and equity-sensitive asset.
As of February 7 (local time), according to cryptocurrency market tracker CoinMarketCap, Ethereum (ETH) traded at $2,057.65, up 12.54% over the past 24 hours. Over the same period, total cryptocurrency market capitalization increased by 10.83%, while Bitcoin (BTC) jumped 11.73%. Ethereum’s 24-hour correlation with the S&P 500 was calculated at 97%, indicating that the rally reflected a broader “risk-on” move aligned with macro conditions rather than asset-specific catalysts.
The primary driver of the surge was a classic macro-led rally. As risk appetite quickly recovered in traditional financial markets, liquidity flowed into cryptocurrencies broadly, and Ethereum followed the same trajectory. Market participants cited renewed Bitcoin buying on major exchanges as improving investor sentiment, with that momentum spreading to major layer-1 assets.
Sector rotation and technical signals also supported the rebound. The market capitalization of the layer-1 sector rose 9.43% in a day, signaling a shift of capital toward large infrastructure blockchains. Technically, Ethereum broke above its 7-day simple moving average at $2,055.2, while trading volume expanded to $63.77 billion, confirming buying conviction. The 7-day Relative Strength Index (RSI) reached 72.65, indicating strong momentum while approaching short-term overbought territory.
A key inflection point in the short-term price structure is whether the $2,055 support level holds. If it does, a retest of $2,090.33—identified as the recent swing high and a Fibonacci resistance—becomes possible. Conversely, a break below could open the door to a pullback toward $1,959.80, the 38.2% retracement level. The market views Bitcoin’s price stability as the key trigger that will determine Ethereum’s next direction.
Experts characterize the latest rise as “a beta play on a macro rally rather than Ethereum-specific fundamentals.” While capital rotation toward layer-1s and technical buying have enhanced short-term upside momentum, sustainability depends on whether strength in traditional markets continues. If Ethereum successfully establishes itself above $2,090 on a daily basis, additional upside may emerge; however, a resumption of profit-taking could also bring the risk of a synchronized pullback.
Disclaimer: This article is for investment reference only, and no responsibility is assumed for investment losses based on this information. The content should be interpreted solely for informational purposes.