Ethereum (ETH) rockets ahead this month – So why does a market analyst fear further collapse?
|Among the top 10 most capitalized cryptocurrencies, Ethereum (ETH) has outshone its peers, marking the strongest performance with a 7% increase over the week. As market analyst for FXStreet Mike Ermolaev noted, the ETH price recently peaked at $2,706 and, even despite a pullback, many are eagerly eyeing the potential for Ethereum (ETH) to breach the $3,500 mark in the near future.
Nevertheless, according to Ermolaev, the possible declaration of ETH as a security could cast doubt on the possibility of reaching this coveted milestone. He also points out a crucial detail that could temper expectations: some technical indicators suggest a potential slowdown in Ethereum’s (ETH) growth.
Ethereum (ETH): Updates, sentiments, and transactions
Ethereum (ETH) has exhibited significant growth while trading within the range marked with its support at $2,016 and resistance at $2,633. The ongoing price increase may be associated with the upcoming Dencun update aimed at increasing network scalability and stability.
Additionally, one of the main pieces of news was that Whale Alert flagged a series of sizable Ethereum (ETH) transactions totaling close to 240,000 ETH. These movements have piqued the interest of traders and investors alike, especially considering that the majority of these transfers were directed towards leading crypto exchanges. Such big movements often raise questions about potential market shifts and the intentions behind such transfers.
Adding fuel to the fire, Prometheum is poised to make waves with its upcoming announcement of custody services for Ethereum (ETH). With ETH's market capitalization trailing closely behind Bitcoin at $280 billion, this move may serve as part of a larger effort by Prometheum to challenge regulatory perceptions and push for Ethereum (ETH) to be recognized as a security – a stance met with skepticism by industry peers.
Ethereum (ETH) technical analysis
Despite a small pullback observed earlier in the week, the ETH price has shown good growth, but key technical indicators depict a mixed picture: the Accumulation/Distribution Indicator (ADI) sits at 30.06, indicating moderate buying pressure.
Despite the bullish crossover, the MACD signal line at 8,83 remains slightly above the MACD line at 7.3. This suggests a potential bearish divergence if the signal line continues to diverge away from the MACD line, indicating weakening bullish momentum.
Ethereum (ETH) price prediction
In a bullish scenario, if Ethereum (ETH) manages to break above the resistance level at $2,633, it could signal further upside potential toward $2,983 and $3,600.
Conversely, in a bearish scenario, if ETH fails to hold above the support level at $2,016, it might trigger selling pressure, potentially pushing the price lower towards $1,750 and $1,134.
What awaits Ethereum (ETH)?
Ethereum’s (ETH) recent surge past the $2,400 barrier has sparked both excitement and concern among investors. Ethereum’s (ETH) upward trajectory is supported by optimistic sentiments and bullish predictions from industry experts. However, according to Mike Ermolaev, the path forward is uncertain, with key technical indicators suggesting potential challenges ahead. As Ethereum (ETH) navigates these dynamics, attention will remain focused on its ability to maintain momentum and potentially breach the $3,500 mark. But it remains unclear what will happen if Ethereum (ETH) is indeed declared a security. There is reason to fear that this event could crash the indicators to historic lows.
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