Recently, the world’s second-largest cryptocurrency by market capitalization started off the day by recovering from the previous losses. As reported previously, Ethereum suffered a 3% decrease in price on January 18, the first major retraction the currency saw this month.
The asset started the day trading at around $1,524. Throughout the day, ETH buyers battled against the growing selling pressure, making the asset trade mostly sideways for a couple of hours.
Eventually, buying pressure overcame the opposition, and $ETH surged by 2.7%, reaching $1,516 at the daily high.
So far, $ETH is showing signs that are withstanding the negative pressure regarding yesterday’s news. At the time, the price of nearly every single crypto was affected by reports regarding a new cryptocurrency regulation initiative by the DOJ, as well as reports regarding a potential bankruptcy of the lending firm Genesis.
So far, no new updates regarding the state of Genesis have been released. The company is the official lender of the Digital Currency Group (DCG). If the bankruptcy materializes, the crypto market will likely see the effects of the company’s fallout.
The Importance of the $1,500 Margin For Ethereum
The fact that the asset is strongly trading around the $1,500 margin is undoubtedly positive.
The $1,500 margin is significant for Ethereum because it represents a key level of resistance or support for the price of the cryptocurrency.
When the price of Ethereum approaches or exceeds $1,500, it can indicate that the market sentiment for the cryptocurrency is bullish and that the price may continue to rise.
Conversely, if the ETH falls below $1,500 — it may indicate that the market sentiment is bearish and that the price may continue to decline.
As such, the $1,500 margin can serve as an important indicator of the overall health and direction of the Ethereum market.