Ethereum (ETH) cryptocurrency rate has grown well after the recent dump, but the bulls did not manage to break through the barrier of resistance. Therefore, ETH/USD should drop in price to $ 2,000 by July 15th.
Ethereum rate increased by 40% from June 26 to July 7. As a result of the pump, the dynamics of changes in the price of the cryptocurrency went beyond the bearish trend line that arose on June 3. This line has already played the role of a support zone, from which the ETH price bounced off on Monday. If the bulls manage to defend this barrier, the upward movement will continue up to $ 2,600.
On the other hand, there is a high probability of a dump in the market. First, Ethereum price dropped to an exponential moving average in 220 hours and broke the uptrend line that began on June 26. If ETH value drops below the EMA Ribbon on the four-hour chart, as happened on June 16, then ETH will begin to depreciate rapidly.
We are betting on a negative scenario of events due to the fact that buyers were twice unable to overcome the 23.6% Fibonacci level, taking into account the fall in the value of the coin from $ 4,380 to $ 1,700 (Bitstamp data). Apparently, the bulls will not have enough resources to gain a foothold above the $ 2,333 barrier. In this case, the bears will seize control of the market, and the ETH price will fall to the nearest support zone – $ 2,000.
Matthew Siegel, head of research at VanEck financial company, made a forecast for the change in the ETH rate in the long term. He assumes that the cryptocurrency capitalization level will reach $ 2 trillion at the end of the next bull run. Now the market cap of the coin is $ 261 billion. Thus, if the number of coins does not change, then the asset price will grow 7.7 times compared to the current figure – up to $ 17,209.
Siegel is confident in the high potential of Ethereum as a blockchain platform. In his opinion, a decentralized network can capture a large share in the areas of investment, payment services, trade, and asset management. Matthew believes that Ethereum is able to defeat competitors in the face of companies that operate in the market for Web 2.0 technologies. Blockchain coins compare favorably with centralized platforms with an effective earning model and ease of use. Siegel estimates the market capitalization level of Ethereum as a commercial project at $ 1.8-2.3 trillion.
However, a new mission to the moon will begin only after the end of the bearish trend, which began on May 12. Drawing an analogy with historical data, it can be assumed that the price of Ethereum will decrease to $ 200 by mid-April 2022. The next bull run should coincide with the halving in the Bitcoin (BTC) blockchain, which is scheduled for May 2024.
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