The price of Ethereum (ETH) has been making new highs despite the fact that bulls are taking a moment to recover their breath following an incredible run. This gradual movement appears to be laying the stage for a slight pullback, but depending on the price of Bitcoin (BTC) and how it behaves, things might very well alter dramatically.
Ether Shows Confidence
According to the most recent data obtained, the total value of all cryptocurrencies has increased by 0.31%, reaching $1.05 trillion. And, at the time of writing, the overall trading activity has also witnessed an increase of 6.96% to $53.53 billion. The price of Ethereum, on the other hand, recently breached the macro downward trendline. The consensus among market watchers is that a significant amount of buying confidence might be generated for a new uptrend in Ethereum (ETH) prices if the altcoin king is successful in overcoming the lower high of $1,700.
However, in the world of cryptocurrencies, fundamental analysis also plays a vital role apart from the technical aspects. With the total ETH staked on the Beacon Chain reaching over 16 million ahead of the Shanghai upgrade; which is almost 13.4% of the total circulating supply, Ethereum price may set off another run-up. A move along these lines will not change the bearish divergence, but it will enable market makers to collect the buy-stop liquidity that is currently lying above $1,679 and catch the early bears in their trap. And while this chase for liquidity is going on, the price of Ethereum might reach as high as $2,000.
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Ethereum (ETH) Price Surge
Additionally, as pointed out by macro and Bitcoin expert tedtalksmacro, the USD stablecoin has significantly increased in the past 24 hours. Recording almost a $320 million growth in supply, it acts as a potential indicator of higher buying demand by retailers and whales in the crypto market.
USD stablecoin uptick in the past ~24hrs
Approximately $320M increase in supply, steady lads. pic.twitter.com/YVbMLIi2vy
— tedtalksmacro (@tedtalksmacro) January 23, 2023
On the other hand, the price threshold of $2,000 isn’t the only thing holding Ethereum back from continuing its ascent. A bullish perspective for the short term, even if it is running on fumes, is warranted if the price of Ethereum does decide to go higher. If Bitcoin bulls can make a strong return, this perspective will shift significantly. In such a scenario, there is a chance that ETH will keep climbing higher and possibly breach the coveted $3,000 mark. As things stand, the price of Ethereum (ETH) is currently being traded at $1,634. This represents a decrease of 0.44% in the past 24 hours, in contrast to its 5.24% jump during the last seven days, as per CoinGape’s crypto market tracker.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.