Ethereum Price Prediction as ETH Jumps Up 20% in Two Weeks – Here’s Where It’s Headed Next
Despite having pulled back now more than 7% from its recent highs last week around the $1,680 area, Ether (ETH), the cryptocurrency that powers the Ethereum blockchain, is still up close to 18% in the last two weeks. Ethereum is the most popular and well-known smart-contract-enabled decentralized layer-1 blockchain protocol, with its native Ether cryptocurrency the second most valuable cryptocurrency by market capitalization after the world’s first cryptocurrency Bitcoin.
ETH sellers have been in control over the last few days ever since Ether failed an attempt last week to push above key resistance in the $1,680 area, a failure which appears to have triggered an uptick in profit-taking by short-term speculators. Technical selling by intra-day traders has likely also played a part – ETH’s latest leg lower was triggered by a bearish breakout from a short-term pennant structure that the cryptocurrency had formed on the 4-hour candle sticks.
Where Next For ETH?
Looking at ETH on a longer-term time horizon, things are looking more positive. Yes, ETH failed to get above the $1,680 resistance (so far), but the cryptocurrency is no longer stuck within the confines of the long-term downward trend channel that dominated for much of late 2022 and into early 2023.
Ether also continues to trade substantially to the north of all of its major moving averages, which are all now moving higher. Meanwhile, the rate at which the 50DMA is rising suggests that, assuming there is no massive drop in ETH in the coming weeks/months, there should be a bullish golden cross sometime in February (when the 50DMA crosses above the 200DMA).
ETH’s latest pullback means that, according to the 14-day Relative Strength Index (RSI), Ether is no longer overbought, suggesting that there is room for buying pressure to rebuild in the days and weeks ahead.
Positive Fundamental Tailwinds
Macro and Ethereum-specific fundamentals may continue to cushion downside. On the macro front, markets are increasingly expecting that the end of the Fed’s interest rate tightening cycle is soon approaching and that by the end of this year and in 2024, the Fed will be easing interest rates once again. That’s thanks to the ongoing rapid pullback in US inflationary pressures and growing signs that the economy is sliding toward recession.
An easier Fed outlook has historically boosted crypto, as happened in 2019 and then in 2020/2021. Ethereum, meanwhile, is expected to implement a major upgrade at the end of this quarter that will enable staked ETH withdrawals, which is expected to drive fresh demand for the asset, with investors attracted by the prospect of being able to flexibly access a stable yield.
Ethereum network fundamentals remain strong, with the number of non-zero balance addresses expected to surpass the important 100 million threshold later this year – a proxy for the cryptocurrency’s continued, inexorable adoption. The combination of the above factors could well keep ETH supported in the coming weeks and months, enabling the cryptocurrency to eventually retest its summer 2022 highs to the north of the $2,000 level.
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