Ethereum (ETH) is poised for another possible run before a major reversal, according to recent analysis. Despite current crypto market volatility, with major spikes in both positive and negative directions, ETH has managed to remain in a bullish market structure, following the lead of Bitcoin. While ETH is currently trading 11% below its YTD high of $2,145, the native asset of the platform still managed to turn green on Friday, rising 1.9% during its London session, as bitcoin refreshed its weekly highs.
The recent US Federal Reserve’s 25 basis points interest rate hike, which is the third time they have done so in 2023, was expected to negatively impact the market. However, this rate hike appeared to be already priced in, with no major sell-offs observed in the cryptocurrency markets. Instead, BTC and Ethereum rose since the announcement. Additionally, Ethereum network activity has been on the rise, with investors using decentralized exchanges to purchase meme coins like PEPE, which has become the third biggest meme coin on the market. This has generated an uptick in gas prices for the ETH network, reaching its 12-month high.
Technical analysis reveals multiple factors pointing towards the possibility of ETH retesting the psychological level of $2,000. The price chart shows that the cryptocurrency has formed a rising wedge pattern, with the top region of the wedge serving as resistance since January 2023. If the price retests the top trendline of the wedge, located above $2,022, it may reach a big supply zone with the presence of the August 2022 highs in the same region. As a result, experts predict a possible pullback after a retest of this level.
Overall, while ETH price movements can be volatile and at times unpredictable, the current market structure and activity suggest a potential price rise before a downward trend sets in. Investors and traders are advised to keep watching the market and consider the factors mentioned when making investment decisions.
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According to https://www.investingcube.com/ethereum-price-prediction-eth-may-have-another-run-before-falling/
The material in this article is written on the basis of another article.