You can also read this news on BH NEWS: Ethereum Struggles for Bullish Momentum as Market Awaits Direction
Ethereum, the foremost smart contract platform and second-largest cryptocurrency by market capitalization, is facing challenges in its price trajectory. The altcoin has been underperforming, particularly when compared to Bitcoin (BTC), and has not initiated the substantial rallies anticipated by investors. Despite the general market showing signs of recovery, Ethereum’s price dipped below the $1000 mark during the oversold period, raising questions about its short-term prospects.
While Bitcoin has revisited its December 2021 price levels, Ethereum is yet to break the $3000 barrier. This disproportionate growth could lead to a scenario where Bitcoin reaches all-time highs, leaving Ethereum trailing significantly. Notwithstanding, Ethereum did witness a price increase from June 2022 but fell short of expectations. Recently, it attempted to breach a previous high but failed to sustain the momentum.
The weekly Relative Strength Index (RSI) suggests a possible slowdown following the latest price increase. As Bitcoin moves away from $50,000, the market is bracing for potential volatility. Ethereum’s weekly chart readings may cast doubt, but daily chart analyses, which capture the most recent uptick, offer a fresh perspective. Analysts are split, with some predicting a brisk rise out of the bear phase, while others express concerns, citing significant Ethereum deposits to exchanges by a co-founder as a potentially alarming sign.
One analyst sets an ambitious target of $10,000 for Ethereum in the next bull run, and others note a short-term breakout that could be the beginning of a climb towards $3,000. The daily chart presents an optimistic view, indicating that a close above $2,510 might break key resistance and spur a move towards $3,350. Conversely, a downturn could see prices retracting to as low as $2,300.