Cryptocurrency Ether (ETH) registered a surge in price on Tuesday, reaching an eight month high and outperforming market leader Bitcoin (BTC). This rally came as U.S. stock futures traded higher, simultaneously driving down the dollar index.

The native token of Ethereum's blockchain rose nearly 3% to $1,873, the highest since August, according to CoinDesk data. Bitcoin rose 1.7% to $28,300. The increase in the value of Ether also caused the ether-bitcoin ratio to go up by more than one percent.

This surge might be attributed to the overall optimism regarding future market trends, particularly within the tech sector. Futures tied to Wall Street's technology-heavy index Nasdaq rose 0.35%, representing a fresh eight-month high. In addition, the decline in the value of the U.S. Dollar, as measured by the dollar index, had a positive influence on cryptocurrencies.

The forthcoming Shanghai upgrade, scheduled to take place in less than two weeks, could be a major reason for the increase in value of Ether. This upgrade will make it possible to withdraw eth staked in the Beacon chain since December 2020, a development which is being seen as an optimistic sign for Ether and liquid staking tokens.

Lewis Harland, portfolio manager at Decentral Park Capital, believes that the rise of Ether against Bitcoin marks a shift of interest in the cryptocurrency realm, placing greater emphasis on Ether as equity rallies enter a historically bullish month.



Other News from Today