Ethereum has been hovering around $1,500, failing to break the $1,700 resistance level since February. However, according to a Twitter post by crypto analyst “Moon” on March 3, Ethereum is currently in an “obvious accumulation range of all time,” setting the stage for more upside potential for ETH in the near future. Moon believes that many investors will want to get involved once the coin has broken out, rallying to the $5,000 and $7,000 trade range. As it is, ETH prices are within a bear formation in higher timeframes. Nevertheless, it is relatively stable from its lows in November 2022.
ETH is currently trading at around $1,580, and the coin has support at about the $1,500 line. For the uptrend to take shape and for buyers to push ETH above February resistance lines and register new Q1 2023 highs, this could comprise a bullish breakout, setting the base for another leg up that may thrust ETH to new all-time highs above $5,000 to $7,000. It is a preview that ETH proponents hold, citing technical and fundamental factors.
At present levels, traders and investors wishing to hold the coin for months and years should be buying the dips, lest they be left by the ETH bull train, according to the analyst. Even though proponents are optimistic about ETH’s prospects, they should proceed with caution. Several fundamental factors, as the events of 2022 reveal, could impact the crypto markets, including ETH.
For instance, despite decreasing inflation, the United States Federal Reserve identified the possibility of increasing interest rates as a tool, and the economy remains weak with relatively weak labor conditions, factors that the central bank might consider.
On the positive side, ETH bulls cite the network’s “burn rate.” So far, billions of ETH have been taken out of the supply. Over the months, ETH’s inflation could drop even further, making the coin deflationary.
It should be noted that if ETH breaks above the current range, ideally with expanding participation, not only will it rally above $2,000, but it stands to possibly more than double, rallying to retest 2021 highs, wherein ETH soared to retest $4,900, more than tripling from 2017 peaks when ETH tested $1,300. At present, the coin is above that critical high of late 2017, acting as support.
ETH investors and traders need to recognize that the crypto market is still prone to volatility, and price swings are expected, especially in the short and medium term. However, long-term investors need to have a different mindset and approach as they focus on ETH’s fundamentals and potential.
ETH is the second-largest cryptocurrency, behind Bitcoin, with its market capitalization reaching $177 billion at the time of writing. Further developments, including a possible move to Proof-of-Stake (PoS) from Proof-of-Work (PoW), will continue to shape ETH’s future. With the planned upgrade, ETH may become more efficient, faster, and more secure than it is presently. This change may enable Ethereum to sustain its position as one of the leading cryptocurrencies in the industry.
In conclusion, despite the ongoing challenge of rival protocols, high gas fees, and scalability, Ethereum looks to be a resilient and robust blockchain network that continues to grow, innovate and thrive. ETH looks poised to bounce back from its current slump, and a potential rally in the $5,000 to $7,000 range looks probable. While investors should be cautious and vigilant, ETH’s potential bodes well for a bright future in the crypto market.
