Ethereum Price Prediction: Bulls Push ETH Towards $3,000 Level – Is it Time to Buy?
The Ethereum price has experienced a slight dip of 0.5% in the past 24 hours, falling to $2,895 as the broader crypto market also faces a pullback. However, despite this temporary setback, Ethereum continues to show strong momentum with a 9% gain over the past week and a 24% gain over the past two weeks.
As the market becomes more bullish leading up to April’s Bitcoin halving, it is likely that Ethereum will regain its momentum in the coming weeks and continue its upward trajectory. With Ethereum’s dominance in terms of usage and transactions within the crypto ecosystem, it is expected to rise higher in both the medium- and long-term.
Ethereum Indicators Point Towards Potential Correction
Ethereum’s indicators are currently showing signs of being overbought, suggesting that a brief correction may be necessary before it can resume its upward movement. The altcoin’s relative strength index (RSI) has risen to 80 in recent days, indicating a potential need for it to come down soon.
In addition, Ethereum’s 30-day average is entering overbought territory and has been well above the 200-day average since mid-November. These factors suggest that a short-term correction may be on the horizon.
Diversification Opportunities with Small-Cap Alts
Given the possibility of an impending correction in Ethereum’s price, many traders may consider diversifying their portfolios by investing in alternative cryptocurrencies. One strategy for diversification is to invest in small-cap tokens that have the potential for new exchange listings, which can drive up their prices.
An example of such a token is Smog (SMOG), a coin based on Solana and Ethereum that recently listed on Jupiter. Since its listing, Smog has experienced significant gains of over 3,000% and has maintained most of its early price increases.
Smog’s unique airdrop system, which rewards token holders with additional coins based on the duration and amount of their holdings, has contributed to its sustained growth. The token has also introduced quests for followers and holders to complete, further incentivizing community growth.
Hot Take: Consider Buying Ethereum and Exploring Small-Cap Alts
With Ethereum’s potential for a correction in the near term, it may be an opportune time to consider buying into the altcoin while it experiences a temporary dip. Additionally, exploring small-cap altcoins like Smog can provide diversification opportunities and the potential for significant gains.
As always, it is important to conduct thorough research and consider your risk tolerance before making any investment decisions in the crypto market.
Source: TradingView
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