Ethereum Price Prediction: Cryptocurrency Prices Place in the Leadership of Bitcoin. The largest digital asset is stuck below $43,000, while support at $42,000 remains stable. Ethereum, its counterpart, has historically mirrored the behavior of BTC. With BTC anticipating a move to $44,000, there is a strong belief that ETH could close the week above the $2,400 resistance, thus paving the way for another climb to $2,700.
Cryptocurrency market caps also vary, according to blockchain data and insights shared by Santiment on
The markets currently no longer have the momentum they have had since October, as optimism for the ETF has grown exponentially. Santiment researchers highlighted “notable bearish sentiment taking hold in cryptocurrency discourse this week.”
🐻 With #cryptocurrency market caps fluctuating and lacking the usual growth that traders have been accustomed to since the start of the bullish #cycle in October, there is considerable #bearish sentiment taking hold in #cryptocurrency discourse this week . #Bitcoin, #Ethereum, #BinanceCoin,
(Continue) 👇 pic.twitter.com/c3M4bPxlhi
— Santiment (@santimentfeed) February 5, 2024
Despite the correction from the January peak of $2,700, Ethereum maintains a generally positive outlook supported by several factors including the upcoming “Dencun” update.
Whether Ethereum will continue its upward trend from last year’s fourth quarter is something investors will be waiting to see. However, with the formation of ETH, a bullish outcome is very likely in 2024.
1. Ethereum Spot ETF Approval: The Race is On
The approval of the first Bitcoin spot exchange traded funds (ETFs) in the US in January saw speculators quickly turn their attention to Ethereum. Despite its questionable status in the eyes of regulators like the Commodities Futures Trading Commission (CFTC), Ether tends to follow the path of Bitcoin.
Two years after the initial approval of the first Bitcoin futures ETF in 2021, the Ethereum futures ETF received the green light in the United States in 2023. Fast forward to 2024, 11 Bitcoin ETFhit the market.
Interestingly, high-ranking individuals in the industry such as BlackRock CEO Larry Fink believe there is potential in an Ethereum ETF.
“As I said, these are just stepping stones towards tokenization,” Fink said during an interview on CNBC in January.
If the drums start beating for an Ethereum ETF, there will be reason to speculate on a significant price rally. However, since Ethereum’s security status is not entirely determined by regulators, the wait may be longer than many expect.
An Ethereum spot ETF makes it easier for traditional investors to gain exposure to Ethereum without directly owning or managing cryptocurrencies,” Bitget CEO Gracy Chen said in an exclusive statement to CoinGape. “This increased accessibility could appeal a broader range of investors, including institutional investors who may prefer traditional investment vehicles.”
Read also: 3 Cheap Altcoins to Buy on February 7: XRP, Shiba Inu Coin (SHIB), Terra Classic (LUNC)
2. Next Ethereum Dencun Update
The Ethereum community is one step away from rolling out the Dencun update to the third and final testnet, Holesky. Various network improvements are expected from the major update, ranging from better scalability to reduced transaction fees on Layer 2 protocols with the implementation of a new technology called proto-danksharding.
The price of Ethereum is expected to start falling after the testnet launch on February 7, especially with the mainnet debut expected before the end of the first quarter.
3. Ethereum Price Prediction as ETH Hits Bottom
The Ethereum price prediction reveals that Ether may have bottomed in the region around $2,200 and is in the early stages of an extended trajectory pointing north.
In addition to the primary support at $2,200, ETH is holding above two other key levels; the lower and middle boundaries of the ascending canal.
The recent bullish crossovers between the moving averages confirm the bullish trend of Ethereum, underlining the growing risk appetite of investors, as confirmed by the Money Flow Index (MFI) which remains at 73 after falling into the oversold region of 28 at the beginning of this week.
Ethereum Price Prediction Chart | Tradingview
If Ethereum’s outlook remains bullish in the coming weeks ahead of the Dencun update on the mainnet, it may be extremely prudent to position Ether above $2,700, especially with levels above $3,000 within reach.
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