The cryptocurrency analyst said in a Twitter post on March 3 that Ethereum is in a “clear all-time accumulation range.”
Will Ethereum Spring to $5K?
Crypto analyst “Moon” thinks there could be more upside potential for ETH in the near future, strongly believing that many will want to get in after the coin breaks out, rallying up to the $5,000 and $7,000 trading range. . As it is, ETH price is inside a bear formation on the higher time frame. Nevertheless, it is relatively solid from its November 2022 low.
$ETH In one of the most obvious accumulation ranges of all time, when it’s $5k, $7k, whatever, why didn’t you buy more here in a few years, and people are making $100 plus moves, lots of analysis Will be done pic.twitter.com/HS9fJuHTfx
— Moon (@MoonOverlord) March 3, 2023
ETH is trading around $1,580 and failed to surpass the $1,700 resistance that marked the February high. On the lower side, the coin has support near the $1,500 line.
For an uptrend to take shape, buyers need to push ETH above the February resistance line and record new Q1 2023 highs. This would include a bullish breakout, setting the stage for another move that could propel ETH to new all-time highs above $5,000 to $7,000. This is a preview of ETH supporters citing technical and fundamental factors.
According to the analyst, at current levels, traders and investors who want to hold the coin for months and years should buy the dips, lest they get left behind by the ETH bull train.
Even though proponents are optimistic about the prospects of ETH, it should be noted that it should rise above the current range, ideally with increased participation. Should this happen, then ETH will not only rally above $2,000, but it will likely more than double as it rallies to recapture its 2021 high.
At that point, ETH surged to retest $4,900, which tripled from its 2017 peak when ETH tested $1,300. Currently, the coin is above the important late 2017 high, acting as a support.
What will make or break ETH?
Nevertheless, traders and investors should proceed with caution. As the events of 2022 show, many fundamental factors can affect crypto markets including ETH.
For example, despite a reduction in inflation, the United States Federal Reserve has stated that it may increase interest rates as a tool. In addition, the economy remains weak with relatively weak labor conditions, factors the central bank may consider.
On the more positive side, ETH bulls cite the network’s “burn rate”. So far, billions of ETH have been taken out of supply. In these months, ETH inflation may drop even further, making the coin deflationary.
Credit : www.newsbtc.com