As positive signs emerged about the Ethereum network, its price dropped slightly on Wednesday morning. Currently, it is trading at $2,951, which is slightly below the high of $3,052 reached this week. Despite this, it is still 27% above its lowest level in February.
Ethereum is Rallying and Gaining Fast
According to Negentropic on Twitter, ETH/BTC shows that Ethereum begins to gain ground, breaking out of the long-term BTC dominance period in Nov 2021. The tweet also notes strong demand for ETH calls that show positions are speculative and, in this case, bullish.
The start of the new week has been fruitful for Ethereum. The cryptocurrency began another climb on Monday, solidifying its position over the $3,000 price level. Following the previous week, ETH witnessed a 16 percent boost from this current rally, making it one of the most successful weeks for crypto. The cryptocurrency was trading above $3K in the early hours of Tuesday.
During the past week, Ethereum has outperformed bitcoin. Bitcoin has gained 8.4 percent in the last week, while Ethereum has gained as much as 16 percent in the same time frame. Similarly, Ethereum’s year-over-year return exceeded 300% last year, while bitcoin’s stayed under 200%.
When it comes to performance during downtrends, BTC still outperforms ETH. ETH has dropped by up to 17 percent during this year’s slump, while BTC has dropped by just 7 percent. While carrying the market on its back, the latter holds up well against the bears.
Ethereum Price is Looking Towards $4K
Today, the price of Ethereum is trading at the top of this month’s range at roughly $2,951, indicating that bulls have recovered some overall momentum. For one thing, the price of ETH rebounded precisely on the median line six days ago and has since printed a massive bullish engulfing candlestick on the 2-day chart. If market circumstances remain unchanged, the price of Ethereum might rise above $4,000 in the next few weeks.
The 17 percent rebound in ETH price from the median line to present levels appears to have two more hurdles to overcome before the bulls declare that they are in charge of the trend.
Note that Ethereum’s price of $3,000 is a psychological number in the crypto world. Hence, it is around this level that keeps the participants on their toes. Another thing to note is that ETH faces the upper resistance barrier on the daily trend channel. Based on the technical indicators, a decisive close above $3,100 and a steady hold of this level could allow further gains.
Folks will invalidate the upside potential of Ethereum if the price drops below $2,550. It would trigger a bear market move, targeting the support at $2,300 and $2,400.
ETH’s Performance is Contributed by “The Merge”
The upcoming upgrades are the reason behind Ethereum’s recent performance. This network upgrade has been in the works, making it a more energy-efficient and faster alternative to bitcoin.
The final phase of this move will begin in the middle of 2022 due to a recent upgrade. The merge is already on the testnet currently running on the Kiln testnet. It means that the mainnet is getting ready to implement it.
Ethereum is currently transitioning from a proof-of-work network that consumes a high amount of resources and power. The rise in interest in Ethereum has been attributed to the increasing number of people involved in the staking process. It has resulted in people on the staking queue reaching a new high.
Sourced from crypto.news.
Written by Adam Robertson on 2022-03-23 17:00:00.
