Ether (ETH) has returned to a relatively stable trading pattern in the $1,550 range, following a notable downward reversal from its earlier session highs in the $1,630s.
This sudden intraday reversal for the cryptocurrency occurred as ETH/USD encountered substantial resistance at its 21-day and 50-day moving averages (DMAs). Nevertheless, Ether is currently finding support above a critical long-term support level at approximately $1,550.
Despite a bullish research report from Standard Chartered, which projected a potential price increase to around $8,000 by 2026, it appears that this forecast has not significantly improved market sentiment.
Geoff Kendrick, the head of Digital Assets Research at Standard Chartered Bank, has asserted that Ethereum is already the dominant force in the realms of NFTs (Non-Fungible Tokens) and DeFi (Decentralized Finance). However, Kendrick believes that Ethereum should also establish its dominance as the primary blockchain supporting the rapidly expanding web3 gaming and tokenization sectors, both of which are anticipated to generate significant demand.
He further emphasized that this shift would serve as “proof of concept” examples in which real-world industries migrate to the Ethereum blockchain to capitalize on its advantages over their existing systems. Kendrick anticipates substantial advancements in these areas by the years 2025-26.
Kendrick also suggested that Ethereum’s price could potentially rebound to around $4,000 by the conclusion of 2024, with the Bitcoin (BTC) halving event contributing to an overall upswing in the cryptocurrency market.
Price Prediction – Will Ether (ETH) Break This Key Support Level?
Progress towards Standard Chartered’s projected $8,000 for Ethereum may face delays, as Ether is currently testing a critical long-term support level at $1,550.
A breach of this support level could potentially pave the way for a rapid descent back to the lows observed in March 2023, which were below $1,400. This implies a possible near-term price decline of up to 12%.
There are prominent macroeconomic challenges in play, including the escalating Israel/Palestine conflict, the uncertainty regarding its impact on global oil markets and global inflation, as well as the recent higher-than-expected US PPI (Producer Price Index) figures, which have raised concerns about the possibility of persistently elevated interest rates in the United States.
In the meantime, the Ether market has exhibited signs of weakness in recent times. The launch of Ether futures ETFs in the United States last week experienced lackluster demand, and the Ethereum Foundation recently offloaded $2.7 million worth of tokens.
However, a potential decline in the price of Ether back into the $1,300s could present an attractive opportunity for long-term bullish investors to bolster their positions. Those who have the means and the desire to capitalize on a perceived “bargain” in the price of ETH should be prepared to act when such an opportunity arises.