Despite recent negative developments in the crypto market, the sentiment seemed to be somehow bullish as Tether, its stablecoin and some major cryptos show resilience in the past couple of days.
The collapse of major banks has significantly impacted the stablecoin market, with Circle’s USDC suffering a depeg causing smart money to flee USDC in favor of other stablecoins.
Tether is benefiting from the chaos in the USDC market with the organization minting more than $2 billion on both the Ethereum and Tron blockchains.
WhaleAlert, a crypto wallet tracker, recently took notice of the mint 15 hours ago. With capital flight already happening on USDC markets, Tether’s recent minting would drive up demand for the stablecoin.
Tether Minting: What Does This Mean For Ethereum?
The minting of stablecoins on the Ethereum blockchain is a move by Tether which is expecting demand to rise for USDT.
According to Nansen.ai, stablecoin diversification is happening after the subsequent collapses of Silvergate, Silicon Valley Bank, and Signature Bank.
Tether’s recent minting could give the top altcoin a much-needed shot in the arm in price in the medium to long term.
Image: Binance Academy
According to CoinGecko, Ethereum is up more than 2% in the daily timeframe. Although comparatively smaller than yesterday’s price movement, it is a welcome addition for investors to pad their portfolios.
USDT, on the other hand, is still the undisputed king in the stablecoin market. CoinGecko’s recent stablecoin market research shows that USDT’s market dominance grew by 2.3% in January to 49%.
On Stagnation And Rejection
The top altcoin is currently trading on the red candle, possibly signaling the start of profit-taking activities in the short to medium term. If the bulls can overcome the selling pressure that is present with high prices, the altcoin can retest the $1,778.99 resistance.
A breakthrough on the latter can push prices to test $1,828 in the medium term.
With more USDT present in the market and a possibility of higher market dominance, ETH’s attractiveness grows for investors. However, this is still speculation as there is an equal chance for the coin to drop.
The current market value of Ethereum is sitting at $1,700, however, the price is currently facing significant resistance near the $1,710 level.
ETH price chart. Source: TradingView
Despite this, if Ethereum manages to break through this level of resistance, it could potentially expose the ETH price towards the $1,800 mark, which would indicate a bullish trend.
As investors await the release of US CPI and retail sales data, they will also be closely monitoring Ethereum’s price movement. Currently, Ethereum’s immediate support levels are at $1,600 or $1,495, on the lower side.
ETH total market cap currently at $201 billion on the daily chart | Chart: TradingView
The outcome of the US CPI and retail sales data release will likely have a significant impact on the overall market sentiment. Should the data indicate positive trends, it could potentially boost investor confidence and lead to a surge in the price of Ethereum.
Conversely, negative results could result in a decline in Ethereum’s value, potentially pushing it towards its immediate support levels.
-Featured image from HappyCoin
