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Analysts Still Expect Ethereum Rally to $500 Despite $40 Flash Drop

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  • Analysts think that Ethereum is primed to press higher despite last night’s $40 drop.
  • One analyst noted that Ethereum remains in an extremely advantageous position on a macro time frame.
  • He shared a chart showing that ETH is currently sitting above macro supports, meaning it has room to stretch toward $800 and beyond as it continues to hold those technical levels.

Ethereum Could Move Toward $500

Analysts think that Ethereum is primed to press higher despite last night’s $40 drop, which took place in the span of two minutes.

One crypto-asset trader noted that even after the drop yesterday, Ethereum remains in an extremely advantageous position on a macro time frame. As the chart shows, ETH is currently sitting above macro supports, meaning it has room to stretch toward $800 and beyond as it continues to hold those technical levels.

“Has not even started its parabolic run like BTC yet, still huge room for upside over the coming few weeks, also major macro support is just below just limits downside risk. Still incredibly bullish across all timeframes.”

 

Chart of ETH's price action over the past few years with analysis by crypto trader Cactus (THeCryptoCactus on Twitter).
Source: ETHUSD from TradingView.com

Another analyst, one that predicted Bitcoin would hit the $3,000s in 2020 months before it did, also recently shared a chart indicating Ethereum will move higher.

The chart suggests that ETH will soon retest its year-to-date highs at $485-495.

Image

Chart of ETH's price action over the past few years with analysis by crypto trader Cactus (TheCryptoCactus on Twitter). 
Source: ETHUSD from TradingView.com

ETH2 Update

Boosting the expectations of a further ETH rally is the expectation that soon enough, Ethereum 2.0 will launch. ETH2 is a fully-fledged upgrade that will overhaul how the blockchain operates to increase transaction efficiency and reduce transaction costs while reducing the energy usage of the blockchain.

Ethereum Foundation researcher Danny Ryan recently commented on the concerns that the ETH2 deposit contract won’t get enough in deposits prior to the launch:

“I personally think that for initial launch, the 100k+ ETH in the contract is sufficient, and that adjusting the threshold down to not leave that ETH in limbo for too long makes sense. Rewards will be very high for these early adopters and the ETH validating will likely grow over time. Planning on adjusting this constant immediately at November 24 or December 1 is a bit aggressive, imo. We don’t know exactly what will happen in the next couple of weeks so we should observe first. On that linked to thread, clients engineering teams seem to want to wait through December, and adjust the constant at the start of January if needbe. This seems reasonable.”

Ethereum could see further gains as ETH is accumulated to be deposited into the ETH2 contract.

Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from ethusd, ethbtc
Analysts Still Expect Ethereum Rally to $500 Despite $40 Flash Drop





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Ethereum

Bitcoin hits $35K after Biden reveals infrastructure deal, Paraguay proposes BTC bill

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Bitcoin (BTC)  price received a boost as news that lawmakers in Paraguay plan to present a bill to make BTC legal tender spread across Twitter. Shortly after the unconfirmed news surfaced on Twitter, Bitcoin price rallied to $35,289 before slightly pulling back below the key short-term resistance level. 

While the cryptocurrency Fear and Greed Index still indicates a sentiment of Extreme Fear, it’s worth noting that the measure has risen from 14 on June 23 to 22 on June 24 as traders begin to view the drop below $29,000 and Bitcoin’s rising open interest as signs that the current corrective phase may have ended. 

Cryptocurrency fear and greed index. Source: Alternative

While traders’ sentiment may have improved slightly, Cointelegraph analyst Marcel Pechman suggested that investors could be waiting for the $6 billion in Bitcoin and Ether (ETH) quarterly futures and options to expire on June 25 before making a more decisive move.

Stocks reach new record highs, altcoins rally

The crypto market wasn’t the only market to rally today. Traditional markets also rose to new highs after U.S. President Joe Biden revealed that he had reached an agreement on a $953 billion bipartisan infrastructure spending plan with the Senate.

Following the announcement, the S&P 500 and Nasdaq each rallied to new record intraday highs and closed the day up 24.65 points and 97.98 points respectively, while the Dow gained more than 322 points on the day. 

Daily cryptocurrency market performance. Source: Coin360

As one would expect, altcoins also surged higher as Bitcoin price and traditional markets moved higher. Ether (ETH) rallied back above the psychologically important $2,000 level, while Tron (TRX) and Celo gained 26% and 28% respectively. CELO’s move appears to be driven by the listing of its Celo Euro (cEUR) stablecoin on KuCoin exchange. 

Prior to the recent price rise, VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for CELO on June 22.

The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

VORTECS™ Score (green) vs. CELO price. Source: Cointelegraph Markets Pro

As seen in the chart above, the VORTECS™ Score for CELO climbed into the green and reached a high of 73 on June 22, one hour before its price began to spike 56% over the next day. The VORTECS™ Score turned green again on June 24, reaching a high of 74 as CELO began to rally another 25%.

The overall cryptocurrency market cap now stands at $1.4 trillion and Bitcoin’s dominance rate is 46.6%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.