Key Levels to Focus on if $ETH Enters New Correction
Ethereum Price Forecast: The second largest cryptocurrency Ethereum(ETH) has gained significantly this week, most likely attributed to the recent launch of the first spot Bitcoin ETF in the US market. Surprisingly, ETH price outperformed Bitcoin following ETF approval, recording a weekly growth of 17.7%. Amid this rise, cryptocurrency buyers rallied above the $2,430 high, indicating the potential for a higher recovery.
Is Ethereum Price Going to $3000?
- ETH price will continue an aggressive rise until the ascending support trend line remains intact.
- Rising prices may face supply pressure at $2700 and then $3000
- Ether’s intraday trading volume is $16.8 Billion, which represents a loss of 14%.
Over the past three months, the Ethereum price has exhibited a consistent upward trend, as evidenced by a rising trend line. The price of the cryptocurrency, which started at $1522, experienced a remarkable increase of 77% and rose to $2717.
Periodic pullbacks in this rally suggest the accumulation of active buyers at lower price points, an important feature of a prolonged rally. Throughout December, ETH price action has been predominantly sideways as the market awaits approval of the spot Bitcoin ETF.
Additionally, BlackRock’s Chief Executive Officer, Larry Fink, expressed support for the idea of creating an Ethereum-based exchange-traded fund (ETF). This announcement comes shortly after the launch of the highly anticipated Bitcoin ETF. “I see the value in owning the Ethereum ETF,” Fink said in a recent discussion on CNBC. He later added: “These are just stepping stones towards tokenization and I truly believe that is where we are going.”
Following the approval of the Spot Bitcoin ETF, expectations for the Spot Ethereum ETF have increased significantly, potentially setting the stage for a significant increase in the value of Ethereum.
Key Support to Watch in Market Correction
By press time, Ethereum (ETH) was trading at $2,565 and was experiencing a slight pullback to retest the previously surpassed $2,400 resistance level. If the price sustainably sustains above this newly formed support, the ongoing recovery has the potential to extend towards the $2,700, then $3,000 and $3,281 targets.
Conversely, in case of a new correction in ETH price, investors need to pay close attention to the ascending trend line. This can present a strategic retreat opportunity, offering a potential entry point for those looking to capitalize on such market movements.
- Bollinger bands: A rise in the upper bound of the Bollinger Band indicator indicates that buyers are dominating the asset.
- Average Direction Index: The daily ADX value of 19% shows that the recent correction has managed to recover the depleted bullish momentum.
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