Ethereum Price Follows Bitcoin Surge, Surpasses $3,700 and Sets Sights on $4,000
In Brief
Price of Ethereum reached $3,700, following the recent surge in Bitcoin, and might soon rally toward the $4,000.
Price of the second-largest cryptocurrency by market capitalization, Ethereum (ETH), experienced a notable increase, reaching $3,700, reflecting a rise of over 5% within a 24-hour period. Ethereum’s movement is following the recent surge in Bitcoin (BTC), which recently reached the $68,000 mark and might soon rally toward the $4,000 resistance zone.
There has been a noticeable upward movement beyond the $3,700 level, resulting in a new multi-month high at $3,715. Currently, the price is consolidating gains and is maintaining its position above the 23.6% Fibonacci retracement level of the upward movement from the $3,465 swing low to the $3,715 high.
Ethereum is trading above the $3,650 mark ($3,695 as of the writing time) and the 100-hourly Simple Moving Average. Additionally, an ascending bullish trend line is taking shape on the hourly chart of ETH/USD, indicating support of around $3,600. This trend line is close to the 50% Fibonacci retracement level of the upward move from the $3,465 swing low to the $3,715 high.
Immediate resistance on the upside is observed near the $3,720 level, with the first significant resistance around $3,780. Subsequently, the next resistance level is identified at approximately $3,850, and a successful breach beyond this point could potentially trigger bullish momentum. If this occurs, the next target for upward movement might be around the $3,920 level.
In the event of a successful breakthrough above the $3,920 resistance, Ethereum can exhibit further upward momentum, potentially reaching the $4,000 resistance level. Any more gains might call for a test of $4,200. If Ethereum encounters difficulty surpassing the $3,720 resistance, a potential downside correction may ensue. In such a scenario, the initial support on the downside is anticipated around the $3,650 level.
Ethereum’s Soaring Value
Some market observers have also attributed the continuous increase in Ethereum’s price to optimism surrounding the potential approval of a spot Ethereum exchange-traded funds (ETFs), increasing funding rates, and rising buying pressure in the United States on the Coinbase exchange.
However, Grayscale Investments indicates the upcoming Dencun upgrade in Ethereum, which is expected to enhance throughput and decrease the cost of certain transactions on the network, as a primary reason for the rise in the cryptocurrency’s value. Additionally, factors such as “net deflationary supply” and “network revenue generation” are also cited as potential reasons for the positive sentiment.
Meanwhile, Ethereum’s market capitalization has recently achieved $449 billion, positioning it at 24th among global companies and major assets. This mark surpasses the market value of companies like Mastercard ($444.6 billion) in the global mainstream asset market, emphasizing the growing popularity of Ethereum as an asset.
Ethereum’s recent performance reflects positive market dynamics, driven by various factors, indicating the network’s growing popularity among global assets.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
