Ethereum Price Prediction: A Rally in the Making
After a remarkable surge, Ethereum’s price has reached $2,745 during the US session on Wednesday. The overall trajectory of the crypto market is upward, with Bitcoin surpassing $51,000 and achieving a market cap of $1 trillion. This suggests that ETH may be on the verge of an impressive rally.
Bullish Outlook Supported by Bitcoin ETFs
The bullish outlook for Ethereum is reinforced by the strong performance of Bitcoin ETFs, which received a total net inflow of $4 billion on February 1. This surge is seen as validation of Bitcoin and crypto from traditional investors who can now seek exposure to BTC through ETFs.
Dencun Upgrade and Spot Ethereum ETF
Ethereum’s potential breakout is also fueled by the upcoming Dencun upgrade. With all three testnet launches completed, developers are expected to announce the final dates for the mainnet debut by the end of Q1. Additionally, optimism for a spot Ethereum ETF is growing as speculators turn to ETH after the approval of BTC ETFs.
Potential Breakout and Key Support Areas
Ethereum aims to break above $2,800 and potentially reach $3,000 and $3,600 by the end of February. The Moving Average Convergence Divergence (MACD) indicator supports this uptrend. If ETH holds above $2,800, it could ignite FOMO among investors.
On the downside, support is expected at $2,700. However, if profit-taking occurs, key support areas to consider are $2,500 and $2,200. Based on blockchain data from IntoTheBlock, Ethereum has a higher chance of rallying to higher levels above $3,000 rather than dropping to January’s support at $2,200.
Consider Buying Ethereum at the Current Market Value
With the potential for further price increases, Ethereum could still be a good investment even at its current market value. If there are dips to lower support areas, a dollar-cost average strategy can be employed to take advantage of the bullish outlook.
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