Ethereum (ETH), the cryptocurrency fueling the Ethereum blockchain’s smart-contract capabilities, has rebounded above the $2,000 per token threshold on Monday. This marks an extension of its gains from last week when it reached lows near $1,900, with the current increase surpassing 6%.
The upswing aligns with a broader positive trend in the cryptocurrency market, driven in part by a weakening US dollar. This trend is fueled by speculation that the Federal Reserve’s tightening cycle has concluded, coupled with optimism regarding increased crypto adoption in South America following Argentina’s election of pro-crypto/Bitcoin President Javier Milei.
Ether enthusiasts are monitoring whether the cryptocurrency can break north of a short-term downtrend that has limited its price since reaching monthly highs in the $2,100s earlier this month.
Factors contributing to the positive outlook for Ether include major asset managers like BlackRock and Fidelity taking steps to establish spot Ethereum ETFs. Additionally, Ether’s supply is experiencing deflation due to a recent upturn in on-chain activity. With the overall macroeconomic environment appearing increasingly supportive for cryptocurrencies, Ether price forecasts are expected to remain predominantly bullish.
Price Prediction – Time to Buy Ether (ETH)?
Ether price predictions took a notably more optimistic turn earlier this month when ETH surged beyond a downtrend that had persisted since the April yearly highs.
However, momentum among bulls has waned in the last week and a half, primarily due to profit-taking following ETH’s inability to breach the yearly highs in the $2,100s. Despite this setback, if the cryptocurrency manages to surpass this level in the coming weeks, it could pave the way for substantial gains.
This is because, beyond the $2,150 area, there are no significant levels of resistance until reaching around $3,500. If a “Santa rally” in the crypto market gains momentum towards the end of 2023, traders could potentially witness rapid gains of around 70% in the months ahead.
Considering the current scenario, it appears to be a favorable time to consider buying Ethereum (ETH), even as the cryptocurrency approaches its yearly highs.
Ethereum maintains its position as the predominant blockchain in use across various sectors, including Decentralized Finance (DeFi), Non-Fungible Tokens (NFT), and the broader web3 ecosystem. The presence of Ethereum scaling protocols such as Arbitrum, Polygon, and Optimism contributes to the blockchain’s continued dominance, effectively competing with emerging layer-1 rivals like Avalanche and Solana.
Anticipated upgrades in the coming years, specifically addressing Ethereum’s scaling challenges, are expected to drive significant additional adoption. This positions Ether as a strong contender to continue its positive performance in the ongoing crypto bull market, which is arguably already in progress.
Ether Alternative to Consider
There’s a lively new player in the crypto space known as Ether ETF Token ($ETHETF), and it’s showing promising performance alongside Ethereum itself. This token might catch the eye of risk-tolerant crypto investors seeking to diversify their holdings.
$ETHETF is uniquely crafted to reward its holders based on news events associated with the anticipated approval of spot Ethereum ETFs in the United States. Over the last 24 hours, the token has seen an approximately 15% increase, according to DEXTools. With a market cap of less than $1 million, there appears to be ample room for potential upside should more investors decide to join the fray.
As a reassuring factor, the token currently boasts $440,000 in locked liquidity, and a DEXTools security audit has not identified any concerning aspects in its smart contract. This information suggests that investors need not be overly concerned about the token being a potential scam.
