After a spectacular rally this week, Ethereum price is valued at $2,745 during the US session on Wednesday. With the general crypto market’s trajectory sustained to the upside, backed by Bitcoin’s ascend above $51,000 while achieving a market cap of $1 trillion, ETH may very well be in the early stages of an incredible rally.

Ethereum Price Prediction: A Rally In The Making

Ethereum price bullish outlook comes amid impressive performance of Bitcoin ETFs which achieved a humongous cumulative net inflow of $4 billion on February 1.

Investors perceive this surge as validation of Bitcoin and crypto from traditional investors. ETFs allow institutions to seek exposure to BTC without dealing with the complexities associated with navigating exchanges, owning physical digital and assets which require special custody services.

Away from the BTC ETF, Ethereum is poised for a larger breakout due to the upcoming Dencun upgrade. All three testnet launches have been completed implying that developers will be announcing the final dates for the mainnet debut before the end of Q1.

Optimism for a spot Ethereum ETF has also started to build. Following the approval of BTC ETFs, speculators turned to Ethereum as the next-in-line digital asset.

The approval of an Ether ETF, although a long shot at the moment, considering the hawkish stance of regulators in the US on whether Ethereum is a security or not, is expected to drive prices higher as witnessed with Bitcoin.

Amid these expectations and potential market mover factors, Ethereum seeks a breakout above $2,800 to extend the leg to $3,000 and subsequently to $3,600 before the end of February.

For starters, the Moving Average Convergence Divergence (MACD) indicator backs the uptrend, displaying a buy signal and green histograms above the neutral area.

Ethereum price chart | Tradingview

If interest in ETH continues this week, holding above $2,800 would signal confidence in the uptrend and possibly ignite FOMO among investors as they speculate on further price increases this week.

Support is expected at $2,700 on the downside. However, if profit-taking destabilises Ethereum price, traders may want to consider $2,500 and $2,200 as key support areas.

Blockchain data by IntoTheBlock reveals that over 7.8 million Ethereum addresses are currently in profit, while 5.45 million addresses deal with unrealized losses.

The largest support area stands out at $2,365 — the average price at which 1.72 million wallets purchased slightly over 5 million ETH. Based on the chart below, Ethereum price has a higher chance of rallying to higher levels above $3,000 as opposed to dropping to January’s support at $2,200.

Ethereum IOMAP chart

That said, Ethereum could still be a steal if bought at the current market value. In case of dips to lower support areas, consider a dollar-cost average strategy to make the most out of the sublime bullish outlook.

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The post Ethereum Price Prediction: ETH Hits $2,700, $3,600 Milestone Next? appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am