Over the last 24 hours, the price of Ethereum has increased by 1.5%, reaching $2,366. This surge is believed to be influenced by Solana experiencing its first outage in a year, thus boosting the value of Ethereum, the leading altcoin in the market.
In the span of a week, Ethereum has seen a 2% rise, while over a fortnight and a month, the increase stands at 6% and 7% respectively. Over the past 12 months, Ethereum has shown a robust growth of 43%.
Despite these positive figures, the percentage gains are considered moderate. However, with the market showing signs of entering a more bullish phase in the near future, Ethereum’s price could potentially witness further upward movement.
Ethereum Price Prediction as It Eyes $2,700 Spike – Is a New Rally Brewing?
ETH’s chart is indicating a potential recovery following a turbulent period for the token over the past couple of weeks.
Several indicators are showing positive signs, including its relative strength index (RSI) which rose above 50 yesterday for the first time in nearly two weeks, indicating increasing strength.
Additionally, the 30-day moving average (MA) has recently turned slightly upwards after remaining flat since the end of last month, signaling a return of momentum.
One reassuring aspect of ETH’s performance is that despite recent setbacks and fluctuations, its support level has held firm, preventing any significant declines, especially compared to the lower levels seen in October and November.
A key factor contributing to ETH’s resilience is its consistently high trading volumes, which continue to surpass those of any other altcoin, with the coin still maintaining a daily trading volume of around $10 billion.
Indeed, Ethereum consistently attracts significant attention from whales, who often engage in substantial purchases of the coin.
It’s also arguable that the market currently undervalues Ethereum, as it remains 51% below its all-time high of $4,878, achieved in November 2021.
Given this context, Ethereum has ample room for recovery, especially considering its strong fundamentals and the overall trajectory of the market.
The Ethereum blockchain still holds a dominant position, accounting for 57% of the total value locked in the entire cryptocurrency ecosystem, a figure that excludes Ethereum-based layer-two networks.
Furthermore, it’s entirely plausible that the next Bitcoin halving could trigger a bull market, with Ethereum poised to benefit more than most other altcoins.
With these factors in mind, it’s conceivable that the Ethereum price could reach $3,000 by the summer, before potentially surging towards $4,000 by the year’s end.
Diversification with High-Potential Low-Cap Alts
While Ethereum remains a stalwart in the crypto space, its status as an established altcoin suggests that it may see more gradual growth this year.
For traders seeking quicker gains, particularly those interested in newer and smaller cap tokens, the spotlight may shift towards tokens that are still in the process of listing.
An illustrative example of this trend is Sponge (SPONGE), an ERC-20 cryptocurrency that made its debut on centralized exchanges in April 2023 and experienced a remarkable rally of up to 150%.
This week, Sponge has launched its second version, SPONGE V2, which supersedes the previous iteration and operates on Polygon’s layer-two network.
Setting itself apart from its predecessor, SPONGE V2 introduces an enhanced staking model featuring a variable rate of return. Depending on staking participation, returns can potentially reach triple figures, offering an attractive proposition for investors.
Indeed, the staking yield currently stands at an impressive 245%, rewarding holders even more for longer staking durations.
Furthermore, SPONGE V2 is set to become the primary token for an upcoming play-to-earn racing game. In this game, participants will compete globally to secure top ranks on the leaderboard, with successful players earning SPONGE rewards.
With this enticing combination of staking enhancements and gaming integration, SPONGE V2 appears poised to surpass its predecessor in profitability. Interested investors can acquire the token directly through the official Sponge website.
While SPONGE is presently tradable on Uniswap, its imminent listing on other exchanges in the following weeks could potentially drive its value to new heights.