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Bitcoin and Ethereum Maintain Popularity Amidst Market Shifts

Bitcoin and Ethereum continue to dominate the cryptocurrency market, with Ethereum (ETH) recently surpassing the $2,000 milestone for the first time since May of last year. Bitcoin, the leading cryptocurrency, held steady within the $30,000 range, reaching its highest price since June 2022 at $31,005 last week.

Ethereum's price increase was largely fueled by the successful Shanghai Upgrade, which defied concerns that the update might negatively impact Ether's price. Instead, validators primarily withdrew their rewards rather than selling their Ether, suggesting the upgrade had no detrimental effect on pricing.

Despite hawkish comments from Federal Reserve officials about interest rate hikes, the global cryptocurrency market remained stable in early Asian trading on Monday. At the time of writing, the market's valuation was $1.27 trillion, up 0.19 percent in 24 hours. Previously, speculation of interest rate cuts led to a surge in Bitcoin prices, driven by low inflation and signs of a slow job market.

However, this trend seems temporary, as hawkish statements from Federal Reserve officials have reintroduced concerns about rising interest rates, allowing the dollar to recover from one-year lows. Bitcoin has seen support from safe-haven demand amidst US bank collapses and recession expectations.

ARK Invest CEO Cathie Wood noted that Bitcoin and Ether have demonstrated resilience in the face of financial sector turbulence, functioning similarly to gold and becoming "flight to safety" assets during macroeconomic uncertainty. This resilience suggests wider adoption and acceptance of cryptocurrencies.

However, Bridgewater Associates founder Ray Dalio remains skeptical, arguing that Bitcoin's volatility makes it unsuitable as a currency and that central banks would not accept it, potentially dampening BTC prices.

Currently, Bitcoin is trading at $29,980 with a 24-hour trading volume of $14.9 billion, while Ethereum is priced at $2,098 with a 24-hour trading volume of $8.9 billion. Ethereum is on an upward trajectory after breaking the $2,075 resistance level, moving towards the $2,150 mark. If Ethereum successfully surpasses the $2,150 level, it could trigger an uptrend reaching as high as $2,250 or $2,300. Conversely, failure to break above $2,160 could lead to a drop to $2,075 or even $2,030. Keep a close eye on the $2,160 level to determine whether to consider a buy or sell trade today.

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