Key Insights:
The entire crypto market appears to be taking a break at the moment, with Bitcoin and several other altcoins consolidating near key resistance levels.
Bitcoin, for example, is still steady around the $30,700 zone at the time of writing. The global crypto market cap also looks relatively healthy, with a 1.19 trillion value.
However, the entire crypto market isn't our primary focus in this article.
In this article, we will be setting our sights on none other than ETH:
ETH is by far, one of the best-performing assets on the market. The cryptocurrency has risen by great strides throughout the year, all the way from its $1,000 lows in January.
However, a look at the charts shows that Ethereum has a fairly big problem:
For some reason, the $2,000 mark has been a very difficult zone for the cryptocurrency, leading to massive price slumps whenever the cryptocurrency comes near or slightly above it.
But what if that was about to change?
In this article, we will take a deep dive into what is really going on with ETH. We will also be going over some interesting bits of analysis, as to why we believe the $2,000 zone is close to being broken.
$3,000 may not be very far off, for Ethereum. Here's why:
ETH has come a long way throughout the year. According to TradingView's indicators, the cryptocurrency has risen by a net price increase of 58%, when we factor in its slump from its year-to-date highs of $2,141.
From the chart above, we can see that ETH has tested the $2,000 zone severally, and even managed to break above it once.
However, after every successful retest, the cryptocurrency has been sent into very steep slumps.
The last slump was especially severe, sending the cryptocurrency into a dip to the $1,639 zone.
However, the chart also shows that Ethereum is trying to break a particularly strong resistance.
Why is this resistance important? And could it be the gateway to a $2,000 and then a $3,000 Ethereum?
The answer may be yes after all. Let's find out why.
One thing you probably already know is that an ETH rally to $3,000 will likely not be a very smooth one.
However, a rally to $3,000 IS likely from here onwards, and that may be enough.
According to DonAlt, an analyst, trader and crypto influencer on Twitter and Youtube: Ethereum may be in for a "rapid rally" to $2,500 soon, as long as it breaks one particular resistance line:
The $1,935 zone.
Recall that in the previous section, the figure was pinned at around $1,920.
This means that you should be setting your sights on the zone between $1,920 and $1,935.
In a recent strategy video on YouTube, the analyst pointed out that if (ETH) closes with a daily candle above $1,935, it becomes "pretty likely" that a price explosion follows.
According to DonAlt, a break over $1,935 will propel $ETH to levels last seen in May 2022 before the Terra (LUNA) ecosystem collapsed.
The analyst mentioned the $2,500 zone specifically, emphasizing that Ethereum has a lot of space to increase once it breaks over the $1,935 zone.
And as far as DonAlt's analyses go, he predicts a 32% price increase for Ethereum from where the cryptocurrency's price currently sits.
Another more optimistic price prediction for Ethereum is from Twitter analyst, Altcoin Sherpa.
According to a tweet from the analyst this week, Altcoin Sherpa mentioned that he "wouldn't be surprised" to see Ethereum rally as high as $3,000 before any kind of pullback.
While the analyst admits that the pullback on Ethereum may be a steep one, due to several macroeconomic conditions, the fact remains that the cryptocurrency is bullish, and is poised, now more than ever, to hit the $3,000 zone very soon.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.