Ethereum’s relationship with the S&P 500 hints ETH to hit $10,000
The post Ethereum’s relationship with the S&P 500 hints ETH to hit $10,000 appeared on BitcoinEthereumNews.com.
Ethereum (ETH) has established a relationship with the S&P 500 index, a correlation that points to a record-high price target for the second-ranked cryptocurrency by market capitalization. In this case, Ethereum might be poised for a record high of $10,000 in a manner that replicates the recent rally by the index, cryptocurrency trading expert Ali Martinez observed in an X post on November 5. S&P 500 and Ethereum correlation chart. Source: TradingView/Ali_charts According to the analysis, both asset classes have experienced a strong recovery after the 2022 market dip, establishing higher lows and climbing steadily. Ethereum’s support level around the $2,600 mark aligns with the support seen in the S&P 500. This similarity could suggest a path for Ethereum to follow if the S&P 500’s momentum continues. With Ethereum recently witnessing some volatility, Martinez noted that this “could be the last dip before Ethereum triples,” projecting a price target of $10,000. Ethereum’s bearish case While ETH’s correlation with the index signals a possible rally, the asset’s price movement compared to Bitcoin (BTC) shows worrying signs. Following Ehereum’s recent correction below the $2,500 support zone, ETH has declined to its lowest valuation relative to Bitcoin since April 2021. BTC/ETH price chart. Source: Barchart The decline is part of a broader trend in which Ethereum has consistently underperformed against Bitcoin since mid-2022. Indeed, this performance saw Ethereum come under scrutiny after failing to mimic Bitcoin in hitting new highs. To this end, concerns have emerged regarding Ethereum’s long-term sustainability. For instance, in an X post in late October, Cyber Capital’s founder and CIO, Justin Bons, alleged that “no hope left for ETH anymore,” citing concerns regarding the network’s Layer 2 venture funding and token dynamics. 1/9) Ethereum is cooked Corrupted by L2 VC funding & tokens, nobody is scaling ETH’s L1 anymore;…
Filed under: News - @ November 5, 2024 3:22 pm