After weeks of decline, ethereum soared yesterday to reach a multi-week high of $530. The gains corresponded with the end of the US tax season. Traders believe that the submission of capital gains taxes will attract more capital to cryptocurrencies.
The boost also came after Reuters reported major funding for a company creating a stable coin built on the ethereum blockchain. Intangible Labs received more than $133 million from leading private equity and venture firms like Bain Capital, Andreessen Horowitz and Lightspeed Ventures.
Other cryptocurrencies have also gained with bitcoin, litecoin, and ripple rising by 4%, 12%, and 13% respectively in the past five days.
The currencies rose despite an investigation by the New York Attorney General, Eric Schneiderman, into major exchanges including Coinbase and Binance. According to Mr. Schneiderman, the firms are not being investigated for any crimes. Instead, his office wants to learn about their businesses with the aim of protecting customers.
Meanwhile, cryptocurrency risks were highlighted yesterday when a company that raised $50 million in an ICO disappeared. The German company’s CEO sent a tweet thanking his investors and saying “Over and Out”. The website of the company showed a picture mocking his investors.
The RSI of ETH/USD is currently at 65, heading south while the MACD is showing signs of further upward moves. There is a likelihood that the pair will continue moving higher if the current market conditions – based on no major negative news – remain.
