The second largest cryptocurrency, Ethereum is trading up nearly 2.5% today and continues the dynamic upward movement initiated in late January. Bitcoin itself has not been growing as rapidly in recent days, although it is still hovering around all-time record highs. Crypto is fueled by a weakening U.S. dollar and the Federal Reserve increasingly indicating that rate cuts are only a matter of time, and that ‘normalization’ of monetary policy is imminent, potentially lowering the risk-free rate and thus driving interest in risky assets.
- Market momentum indicates that capital is looking intensely towards Ethereum and increasingly – towards smaller projects (altcoins), which agrees with the historical pattern of previous bull markets.
- It’s worth noting that while historically the altcoin market’s gains only accelerated after the halving of Bitcoin itself, the cycle now may be a bit different, as Bitcoin reached new historical highs before halving, which has never happened before.
- The project expects two major catalysts in the development of the network, the halving of Bitcoin itself and the potential SEC approval of the Ethereum ETF. In such a scenario, the area around $5,000 appears to be a realistic target this year, implying the potential for 25% upward movement.
Ethereum chart (D1)
Looking at the chart, we can see that the token is trading in a regular uptrend, which recently broke through resistance in the form of the 23.6 Fibonacci retracement of the 2021 downtrend wave, at $3700; while opening the way to levels near $4000. Looking at previous large price reactions, we can see that if we count the current upward wave since last autumn, Ethereum could potentially face a correction around $4100, which would imply a nearly 5% rise. The magnitude of this increase is 1:1 in line with all, previous major Ethereum downturn waves, from 2021 and 2022. On the other hand, if we consider it more appropriate to compare the current increases to the upward waves of 2021 and 2022, the impulse from the end of January could lead Ethereum even to levels in the vicinity of $4500 – $5000, near all-time highs.
Source: xStation5
Read More: Chart of the day – ETHEREUM (08.03.2024)
Disclaimer:The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website’s content as such. NewsOfBitcoin.com does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.