Experts Expect Ethereum (ETH) To Break $2,000 Shortly, Here’s Why
April 05 2023 - 3:00AM
NEWSBTC
The price of Ethereum (ETH) is currently experiencing a strong
upswing, outperforming Bitcoin, which has been able to extend its
dominance on the crypto market in recent weeks. Even Bitcoin’s
ongoing sideways phase does not seem to worry Ethereum investors,
who managed a breakout above $1,900 today. The psychologically
important price target of $2,000 is thus within reach. Eight days
before the highly anticipated Shapella update on April 12, the
Ethereum chart looks extremely bullish. Moreover, the trading month
of April is statistically one of the most bullish months of the
year for the crypto market. Also, ETH is getting tailwinds from the
continued weakness of the US Dollar Index (DXY). Analysts Predict
Ethereum To Break Above $2,000 Jonah Van Bourg, head of trading at
the crypto asset trading firm Cumberland, published a very bullish
analysis on Ethereum via Twitter. As the analyst explains, ETH
(unlike Bitcoin) has just broken out of its trading range, which
has been in place since mid-March. And the fact that this is
happening against the backdrop of a generally bearish regulatory
climate makes it even more special. Moreover, various metrics
confirm the strong bullish momentum. “Doge-themed redesign of
Twitter notwithstanding, ETH gas spiked to 68 gwei yesterday – the
highest we’ve seen since the Luna crisis of 2Q22 and its associated
flurry of DeFi activity,” Van Bourg declared, pointing to the
Shapella update as an actually bearish event. After more than two
years, numerous holders will be able to access their staked ETH for
the first time, theoretically making large amounts of
out-of-the-money ETH units liquid and available for sale. “That
said, the exit queue is empty,” Van Bourg noted. Related Reading:
Ethereum’s (ETH) Price Rally Set To Persist, On-Chain Data Shows
Also bullish is that leverage in the futures market is at a minimum
and robust price action suggests that positioning is low and excess
longs have already been flushed. According to the Cumberland
analyst, Ethereum’s strength could also be an early indicator for
an altcoin rally if the recent past repeats itself. Most recently,
it has been seen time and time again how the initial BTC strength
spilled over to ETH and then to altcoins. Thus, all eyes are on ETH
at the moment – a solid retracement would represent an important
leading indicator and potentially herald a lucrative trading
environment. Cup & Handle Pattern Signals Buying Opportunity
Aksel Kibar, a chartered market technician (CMT) has tweeted that
ETH/USD could be two days ahead of the BTC/USD trading pair,
according to the bullish flag chart pattern breakout that ETH has
is forming, while Bitcoin is trailing. Related Reading: Bitcoin And
Ethereum Correlation At A Staggering 97%, BTC Rally Incoming? At
the same time, Ethereum has also formed a Cup & Handle pattern
over four months on the 1-day chart, as Kibar notes. As the name
suggests, the chart pattern resembles a cup with a handle, with the
cup shaped like a “U” and the handle drifting slightly downward.
The pattern is considered a bullish signal that extends an uptrend
and is usually seen as a buying opportunity. At press time, the
Ethereum (ETH) price stood at $1,912, up 5% in the last 24 hours.
Featured image from iStock, chart from TradingView.com
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