Is Ethereum Preparing for a $5,000 Rally? Crypto Analysts Think So
According to a recent tweet from popular crypto analyst “Moon,” Ethereum (ETH) is currently in an “obvious accumulation range of all time.” This means that many investors and traders could potentially be interested in getting involved with ETH if the coin breaks out of its current bear formation and rallies to the $5,000 and $7,000 trade range.
At present, ETH is trading at around $1,580 and has failed to breach the $1,700 resistance level seen in February. However, proponents of the cryptocurrency are optimistic about its future prospects, citing both technical and fundamental factors.
To see the uptrend take shape, buyers will need to push ETH above February resistance lines and register new Q1 2023 highs. This would comprise a bullish breakout, setting the base for another leg up that may thrust ETH to new all-time highs above $5,000 to $7,000.
Despite this optimism, it should be noted that traders and investors should proceed with caution. The crypto markets are subject to several fundamental factors that could impact the price of ETH, such as potential interest rate increases from the United States Federal Reserve.
That being said, proponents of ETH point to the network’s “burn rate” as a positive factor. Billions of ETH have been taken out of supply, and over time, ETH’s inflation could drop even further, making the coin deflationary.
In conclusion, if ETH does break out of its current bear formation and rally to new all-time highs, it could potentially reach $5,000 or more. Investors and traders who are bullish on ETH should be buying the dips and holding the coin for the long-term to maximize their potential gains.
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