Ethereum is currently trading at $2,300 after a massive rally that has seen the price rise 28.44% in the past week. The world’s second largest cryptocurrency is now testing the $2,600 resistance level after breaking above the daily 50 exponential moving average for the first time since June 7.
Much of it will also depend on whether Bitcoin can close a daily candle above the USD 40,400 level. This would confirm a bullish breakout on Bitcoin, which would result in a subsequent rally in the broader cryptocurrency market. Ripple XRP price has risen.
Aside from $2,600, the main upward target for Ethereum comes in at $2,892 as it has not been surpassed since its price drop on May 19. A step above that level would mean a major behavioral change, leading to two possible scenarios.
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The first and most unlikely scenario is a return to a cryptocurrency bull market with new all-time highs ahead. There is certainly a potential of this, but it would take a major, groundbreaking news event to negate the lingering frothy sentiment.
The most likely situation would be a bull trap, just as Bitcoin had a bear trap below $30,000 last week. A bull trap is a market move that tempts even the most bearish macro traders into thinking that a bullish outcome is imminent. In this case, it would be if Ethererum breaks above $3,000 on convincing volume, which would capture high-leverage bullish traders before squeezing those positions with subsequent downward movement. This would effectively bolster a cryptocurrency bear market, with ultimate targets below $20,000. Shiba inu rate has risen.
About Ethereum
Ethereum was launched by Vitalik Buterin on July 30, 2015. He was a researcher and programmer who worked on Bitcoin Magazine and he initially wrote a white paper in 2013 describing Ethereum. Buterin had suggested that Bitcoin needed a scripting language. He decided to develop a new platform with a more general scripting language when he couldn’t agree to his proposal.