Ethereum eyes recovery, trails surge in Bitcoin

Ethereum has breached the milestone of $3,000 and is now looking to test the next-best resistance of $3,050. However, an actual recovery depends on how Bitcoin makes a move on the price chart. ETH is essentially trailing BTC, with Bitcoin moving above $65,000 at the time of writing this article. More specifically, BTC is listed at $66,240.42 right now.

The price of ether, on the other hand, has surged by 3.735% in the last 24 hours and 0.80% in the last 7 days. There has also been an uptick in market cap and 24-hour trading volume by 3.71% and 37.59%, respectively.

ETH has previously tested a low of $2,860 and maintained the 100-hourly SMA, or $2,950. An immediate resistance level is set for $3,050, with an optimistic version of $3,100. It can alternatively test its position at around $3,040. Technical indicators are, however, less bullish about Ethereum’s future prospects. For instance, the hourly MACD is said to be losing momentum in the bullish zone.

BTC is above $66k and is poised to surpass the ATH of around $73,000. This has the potential to set a new benchmark of $100,000 by the end of this year, that is, 2024. Analysts speculate that BTC can go as high as $150,000. Bitcoin Halving has softened the decline in its token value. Going beyond the maximum range of the consolidation phase has allowed crypto enthusiasts to anticipate a massive surge.

Furthermore, there was the expectation of a price correction—something that Bitcoin is believed to have overcome. The same principle now applies to Ether. Even if we set the next resistance on a higher side, it still has the potential to retract to a lower value. This extends to other tokens as well, including meme coins like SHIB, DOGE, or XRP.

A rise in Bitcoin’s value is dependent on several factors, including economic conditions and a call for a rate cut by the Federal Reserve. Another side depicts more factors, such as liquidity and global money supply, that enhance investors’ risk appetite. The higher the liquidity and supply, the greater the chances of inflow in the crypto market. Spot Bitcoin ETF could ideally attract some attention, with a ripple effect over other tokens.

The first rate cut in 2024 could happen by September 2024. This is merely a prediction, which may or may not actually happen. Furthermore, the cold temperature regarding the anticipated approval of Ether ETF makes things complicated for ETH. 

Reportedly, the regulator and applicants have had little to no word on the approval of the Spot Ether ETF. There are fewer chances that it will get a green light in the next couple of months. Overall, Ether now relies on BTC to recover its token value. A value of more than $3,000 would suffice for now, but it needs Bitcoin to sustain the $65k+ margin.

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

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