Ethereum Price Prediction: Will ETH Price Regain $3000 by Year End?
The crypto market witnessed high volatility and selling pressure this week primarily attributed to the recent departure of Changpeng Zhao, from the CEO position of Binance Exchange. The sell-off occurred amid allegations from the Department of Justice (DoJ) accusing Binance and Zhao of non-compliance with U.S. anti-money laundering regulations. The ripple effect pushed the Ethereum coin to $1900 but an immediate counterattack from buyers has managed to regain the $2000 psychological mark.
The second largest crypto, down 1.04% in the last 24 hours to $2,077 and 20% over the last four weeks, swept liquidity at $1,930 as investors reacted to the developments at Binance.
The former Binance CEO resigned following a $4.3 billion settlement agreement with the Department of Justice (DoJ) and on the condition that CZ pleads guilty to violating anti-money laundering regulations and does not hold an executive position at the company.
Although CZ will be allowed to retain his stake in Binance, his exit has touched many who feel that his impact contributed immensely to the growth the crypto market has achieved over the years.
Recommended for you: Binance Coin Price Prediction As BNB Nurtures 25% Bullish Move
Can Ethereum Price Ignore Fed Minutes And Rally To $3,000?
Market participants are likely to rally behind Ethereum price, especially with the token trading above the $2,000 support. This move from $1,930 assures traders that Ether has a strong bullish outlook—one that could trigger a larger breakout toward the coveted $3,000 level.
Several indicators back the bullish theory, starting with a couple of golden cross patterns formed when the 50-day Exponential Moving Average (EMA) (red) crossed above the 100-day EMA (blue) and the 200-EMA (purple) roughly two weeks ago.
The breakout to $3,000 will greatly depend on two key levels; the validity of support at $2,000 and weakening resistance at $2,130. A break above this hurdle is critical to the uptrend’s continuation as it shows that ETH price is backed by increasing momentum.
This could also help invalidate the sell signal from the Moving Average Convergence Divergence (MACd) indicator. With a bounce from the immediate support level at 50, the MACD could rebound thus, prompting another bullish breakout.
Meanwhile, the Ethereum price outlook is surprisingly strong despite the release of the Federal Reserve’s minutes of the November 1 meeting which revealed a collective take by the committee members that although the economy grew at a stronger rate in Q3 and remains resilient, inflation “remained well above the Committee’s longer-run goal of 2 percent, and participants remained resolute in their commitment to bring inflation down to the Committee’s 2 percent objective.”
All participants echoed the need to retain the restrictive economic policy if the Fed is to achieve its long-term goal of returning inflation to the desired 2%. The committee agreed to focus on the current data to inform the decisions on interest rates in upcoming meetings.
There was no mention of when the Fed could consider rate cuts. However, it is unlikely the committee will hike interest rates again this year. Overall, the US economy is still under the microscope, with inflation said to be “unacceptably high.”
This outlook could be sufficiently bearish for risk asset classes like Bitcoin and Ethereum. However, at the moment, a buoyant Ether has the potential to close the gap to $3,000.
Related Articles
- Justin Sun’s HECO Chain Faces $86 Mln Hack Amidst Exploit Concerns
- Analyst Predicts Bitcoin Signals Stable OI Amid Binance Lawsuit
- Where Cardano Price is Heading By November End, $0.5 or $0.3?
- Solana Price Rallies 5% as Nasdaq-listed VisionSys Launches $2B SOL Treasury Strategy
- XRP Ledger Rolls Out MPT Standard for Real-World Asset Tokenization
- SEC Puts Crypto ETF Approvals On Hold Following U.S. Government Shutdown
- Pi Network Adds DEX and AMM Features To Expand Pi Coin’s Utility
- October Fed Rate Cut Odds Rise After Weak U.S. Labor Data, Bitcoin Surges
- Cardano Price Forecast As Hashdex Listing Fuels Optimism For $1.27 Breakout
- BONK Price Rally Ahead? Open Interest Jumps as TD Buy Signal Flashes
- Shiba Inu Price to Surge as Whales Buy and Team Commits to Shibarium Growth
- XRP Price Prediction After Ripple CTO David Schwartz Resigns
- SUI Price Eyes $4.5 as Coinbase Futures Listing Sparks Market Optimism
- Chainlink Price Holds $20 Support Amid Tokenization With DTA Standard Progress – Is $47 Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
