ETH May be Back above $3500 after Upgrade
Last Sunday, the price of Ethereum was near a critical level of $1800, a fall below which would mean a continuation of the bearish scenario. However, it seems that the panic mood of the market has subsided somewhat, no further sales followed. On the contrary, it served as an impetus for some investors to buy at the bottom.
After reaching $2,390 yesterday, ETH/USDT now is consolidating around $2,270. Though it is too early to talk about bullish reversal, but both fundamental and technical factors indicate that a rebound is still ongoing.
Despite the fact that the institutional demand for cryptocurrency is declining, many experts assess the current situation with optimism. According to JPMorgan analysts, “the cryptocurrency market is not yet completely healthy, however, the healing process has already begun.” Due to regulatory uncertainty, many of institutional investors have not yet entered the crypto market, but sooner or later they will, creating an increased demand for some cryptocurrencies.
For example, the former hedge fund manager Cramer & Co. and the host of CNBC’s Mad Money show Jim Kramer increased his savings in ETH.
In addition, Kramer also made an argument in support of Ethereum: “I love Ethereum because people actually use it a lot more when they buy NFT or something like that. I will continue to buy Ethereum. “
By late July or August, ETH network will conduct an upgrade. Ethereum Improvement Proposal (EIP) 1559 recommends some changes to the way fees are handled on the Ethereum network. The proposal will reduce users’ fees. It will also reduce the supply of outstanding ETH, making the remaining ETH worth more.
Another Ethereum network stake protocol upgrade is scheduled in 2022. After the upgrade, ETH will be generated by staking 32 or more ETH in a pool. The bottom line, the supply and demand factors will make Ethereum more valuable. Ethereum is still relatively cheap, and investors can rush and buy before the upgrade.
ETH Technical Analysis
On the daily chart, indicators are already on the side of the Bulls. The histogram of the MACD indicator from the beginning of last week began to grow in the positive zone. And the RSI indicator, without touching the support line, turned to the north. Now the main goal of the Bulls is the upper border of the side corridor. If the Bulls manage to rebound to the $2800 mark, then the next target will be $3500.
On the weekly chart, despite the price rebound upwards, the MACD histogram has not yet shown signs of an upward movement, and the RSI indicator is still in the neutral zone. And the only possible signal of the end of the decline may be the “Double Bottom” pattern formed. ETH may continue the sideways movement this week.
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