Ethereum Price Prediction As ETH Tops $2,800, A Rally To $4,000 In The Making?
Highlights
- Ethereum price has made headway above $2,700 since January.
- Investors speculate further price increases based on the Dencun upgrade and spot ETF narratives.
- Over 7.8 million ETH addresses in profit as Ethereum makes strides towards a $3,000 short-term target.
Ethereum price is rallying at an impressive rate alongside its peer Bitcoin, which almost touched $53,000 on Thursday. Investors seem to be spoilt for choice, especially with altcoins making incredible strides. As discussed earlier today, investors are likely to start redistributing capital from Bitcoin profits into altcoins, propping tokens like ETH for a larger breakout targeting $4,000 in Q1.
Ethereum Price Prediction: A Rally In The Making
Ethereum price bullish outlook comes amid impressive performance of Bitcoin ETFs which achieved a humongous cumulative net inflow of $4 billion on February 1.
Investors perceive this surge as validation of Bitcoin and crypto from traditional investors. ETFs allow institutions to seek exposure to BTC without dealing with the complexities associated with navigating exchanges, owning physical digital and assets which require special custody services.
Away from the BTC ETF, Ethereum is poised for a larger breakout due to the upcoming Dencun upgrade. All three testnet launches have been completed implying that developers will be announcing the final dates for the mainnet debut before the end of Q1.
Optimism for a spot Ethereum ETF has also started to build. Following the approval of BTC ETFs, speculators turned to Ethereum as the next-in-line digital asset.
The approval of an Ether ETF, although a long shot at the moment, considering the hawkish stance of regulators in the US on whether Ethereum is a security or not, is expected to drive prices higher as witnessed with Bitcoin.
Amid these expectations and potential market mover factors, Ethereum seeks a breakout above $2,800 to extend the leg to $3,000 and subsequently to $3,600 before the end of February.
For starters, the Moving Average Convergence Divergence (MACD) indicator backs the uptrend, displaying a buy signal and green histograms above the neutral area.
If interest in ETH continues this week, holding above $2,800 would signal confidence in the uptrend and possibly ignite FOMO among investors as they speculate on further price increases this week.
Support is expected at $2,700 on the downside. However, if profit-taking destabilises Ethereum price, traders may want to consider $2,500 and $2,200 as key support areas.
Blockchain data by IntoTheBlock reveals that over 7.8 million Ethereum addresses are currently in profit, while 5.45 million addresses deal with unrealized losses.
The largest support area stands out at $2,365 — the average price at which 1.72 million wallets purchased slightly over 5 million ETH. Based on the chart below, Ethereum price has a higher chance of rallying to higher levels above $3,000 as opposed to dropping to January’s support at $2,200.
That said, Ethereum could still be a steal if bought at the current market value. In case of dips to lower support areas, consider a dollar-cost average strategy to make the most out of the sublime bullish outlook.
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