Ethereum price has strengthened its bullish outlook mid-through the week’s trading. The 4.8% gain in 24 hours coincides with a market-wide recovery led by the most prominent crypto, Bitcoin. BTC surged by more than 7%, breaching $29,000 resistance in the wake of last week’s sell-off below $25,000.
The largest smart contacts token, currently trading at $1,815, is on the verge of validating a spike above $2,000 for the first time since early May.
Crypto markets are flipping substantially bullish this week as investors reconsider the potential short-term gains that can be tapped following the Federal Reserve decision on interest rates.
The regulator paused interest rate hikes, a move that is expected to bolster risk assets like Bitcoin and Ethereum. Additionally, Blackrock’s spot Bitcoin ETF application has continued to buoy the crypto market.
As reported this week, more institutional investors are entering the crypto market with different products. For instance, Fidelity Investments backed EDX Markets launched on Tuesday.
It is a crypto exchange platform catering to the needs of brokers and investors who hope to avoid messy business operations such as those that led to the implosion of FTX.
Ethereum price now sits above the applied moving averages, starting with the 200-day Exponential Moving Average (EMA) at $1,728, the 100-day EMA at $1,785, and the 50-day EMA at $1,806.
The bullish outlook, which started to form immediately after the most recent dip to $1,625, is now a heartbeat away from closing the gap to $2,000. Meanwhile, a buy signal from the Moving Average Convergence Divergence (MACD) indicator, is ready to bolster the expected move above $2,000.
Based on the position of the Money Flow Index (MFI), the trend reversal can be attributed to an influx of funds into ETH markets. The MFI is moving toward the midline after sliding to 27 on Monday.
If buyers heed the call to buy Ether from the MACD, the liquidity backing this trend reversal would be enhanced. A daily close above two key levels would be essential for Ethereum price to validate the rally.
First, bulls must strive to keep ETH above the 50-day EMA and the 100-day. Secondly, short-term support at $1,800 is imperative for the ongoing $2,000-bound price action.
That said, new long positions in ETH may have to wait until Ethereum has validated the above conditions. To a large extent, such validations would help traders avoid bull traps that may lead to sudden pullbacks.
Key support areas to watch out for in the event of a trend correction below $1,800 include the 200-day EMA (purple) at $1,728 and the potential support highlighted along the ascending trendline.
With Bitcoin halving set to occur in less than ten months, analysts like Michaël van de Poppe are urging investors to consider buying altcoins like Ethereum. Halving is the event that slashes BTC miner rewards, thus reducing supply to keep inflation at a minimum.
Buy your #Altcoins.
Ten months prior to the halving is the best moment.
This cycle is the big one.
Accumulate.
— Michaël van de Poppe (@CryptoMichNL) June 20, 2023
Halving events have also been associated with the onset of the bull market. As supply and demand dynamics change, Bitcoin price begins to rally while pulling the entire crypto market up with it.
Buying Ethereum and other altcoins at this time could give investors a golden chance to capitalize on the expected bull market in 2024 going into 2025.
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