The Ethereum Price Soars to a 620-Day High
This week, the price of Ethereum (ETH) has experienced a significant increase, rising by 20% and reaching its highest point in 620 days. But can this upward movement continue and push the ETH price to $3,000? Let’s take a closer look.
Will Ethereum Catch Up to Solana?
In a recent interview with Slater Heil, CEO at Composable Corp and leader at Blueberry Protocol, he discussed the reasons behind Ethereum’s perceived underperformance compared to Solana. One factor is that Solana’s price had fallen more than Ethereum’s in the previous year. Both SOL and ETH are currently close to their 0.382 Fib retracement resistance levels.
Ethereum’s Outperformance by Betas
Interestingly, Ethereum has been outperformed by its betas such as Lido DAO (LDO), Arbitrum (ARB), and Optimism (OP). This could be due to investors and speculators always seeking new opportunities in the market.
Ethereum Price Prediction: Where to Next?
Looking at the technical analysis on the weekly time frame, the ETH price has been gradually increasing since May 2022. After several unsuccessful attempts, it finally broke out this week, reaching a high of $2,689. The weekly Relative Strength Index (RSI) also supports this increase.
Resistance and Support Levels
If the upward momentum continues, the next resistance area for ETH will be between $3,340 and $3,500. However, if there is a weekly close below the ascending resistance trend line, it could invalidate the breakout and lead to a 25% drop to the closest support at $2,000.
Hot Take: Ethereum’s Potential to Catch Up
Despite the recent underperformance compared to Solana, Ethereum has the potential to catch up. While it may have higher transaction fees and a user experience more tailored to large investors, Ethereum prioritizes long-term security and scalability. This strategy aligns with attracting investors who value security over quick, low-cost transactions. With upcoming developments like the launch of Blueberry Protocol’s DeFi terminal and governance token, Ethereum’s growth prospects remain strong.
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