The price of Ethereum (ETH) has hit new highs despite bulls taking a moment to catch their breath after an incredible run. This gradual move seems to be paving the way for a slight pullback, but depending on the price of Bitcoin (BTC) and how it behaves, things could very well change drastically.
Ether shows confidence
According to the most recent data obtained, the total value of all cryptocurrencies has increased by 0.31% to $1.05 trillion. And at the time of writing, total trading activity has also witnessed a 6.96% increase to $53.53 billion. The price of Ethereum, on the other hand, recently broke through the macro downtrend line. The agreement among market watchers is that a significant amount of buying confidence could be generated for another upward trend in Ethereum (ETH) prices if the altcoin king manages to overcome the lower high of $1,700.
However, in the world of cryptocurrencies, fundamental analysis plays a crucial role in addition to the technical aspects. With the total ETH wagered on the Beacon Chain reaching over 16 million ahead of the Shanghai upgrade; which is almost 13.4% of the total circulating supply, the Ethereum price may cause another run-up. A move along these lines won’t change the bearish divergence, but it will allow market makers to collect the buy-stop liquidity currently above $1,679 and catch the early bears in their trap. And while this hunt for liquidity is underway, the price of Ethereum could reach as high as $2,000.
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Ethereum (ETH) price increase
Additionally, as noted by macro and Bitcoin expert tedtalksmacro, the USD stablecoin has risen significantly over the past 24 hours. With nearly $320 million growth in supply, it acts as a potential indicator of higher buying demand from retailers and whales in the crypto market.
USD stablecoin rise in the last ~24 hours
About $320 million increase in supply, solid guys. pic.twitter.com/YVbMLIi2vy
— tedtalksmacro (@tedtalksmacro) January 23, 2023
On the other hand, the $2,000 price threshold is not the only thing stopping Ethereum from continuing its rise. A short-term bullish perspective, even if it runs on vapes, is warranted if the price of Ethereum decides to move higher. If Bitcoin bulls can make strong returns, this perspective will shift significantly. In such a scenario, there is a chance that ETH will continue to climb higher and possibly cross the coveted $3,000 mark. As things stand, the price of Ethereum (ETH) is currently trading at $1,634. This represents a 0.44% drop in the past 24 hours, as opposed to the 5.24% increase over the past seven days, according to CoinGape’s crypto market tracker.
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Pratik has been a crypto evangelist since 2016 and has experienced almost everything crypto has to offer. Be it the ICO boom, the bear markets of 2018, Bitcoin’s halving so far – he’s seen it all.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.
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