Price on Cusp of Bullish Breakout Similar to Bitcoin Following US Regulatory Clarity
Ethereum (ETH) price is currently retesting a crucial support/resistance zone around $2,130 with the bulls rejuvenated for a robust bullish breakout.
The second largest digital asset by market capitalization Ethereum (ETH) has attracted notable attention amid the ongoing Web3 mainstream adoption fueled by institutional investors. The recent Ethereum spot exchange-traded fund (ETH) filed by the well-funded BlackRock Inc (NYSE: BLK), has sparked high interest for the undisputed smart contract and DeFi king that has a total value locked (TVL) of about $26 billion. Additionally, the Ethereum network has dominated the stablecoins market as it had a total of about $65.8 billion, thus accounting for more than half.
Ethereum Price Action
With the demand for Ether rising exponentially amid the mainstream adoption of blockchain technology, the underlying value is expected to revisit its all-time high and rally beyond in the next two years. Furthermore, the leading altcoin is traded globally and provides liquidity for the majority of the medium and small-capped altcoins. Consequently, popular analyst alias Crypto Rover on the X platform highlighted that ETH price is well positioned to reach $5,000 if the instrument breaks above the macro ascending triangle.
If #Ethereum breaks this level,
$5,000 will be next. pic.twitter.com/7Li1a33iTg
— Crypto Rover (@rovercrc) November 23, 2023
Notably, the Ethereum price is likely to follow the footsteps of Bitcoin, which broke out of the macro ascending triangle at the support/resistance level of around $32k, in the coming weeks. Furthermore, the altcoin has revisited this year’s high that was posted after the Shanghai upgrade, which enabled the withdrawal of staked Ether. Meanwhile, the staked ether has grown exponentially to around 28.2 million from about 884k network validators.
From a technical standpoint, ETH/USD on the daily chart recently formed a golden cross between the 50 and 200 Moving Average (MA), after a successful retest of around $1,900 following the USA vs Binance saga. In the short term, Ethereum’s price is likely to rally 20 percent towards $2,400.
Market Outlook
The Ethereum Foundation and the core developers led by Vitalik Buterin have significantly helped decentralize the mainnet through several upgrades including the move from Proof-of-Work (PoW) to Proof-of-Stake (PoS). The transition to PoS has over time helped the Ethereum network navigate ongoing regulatory hurdles more effectively. However, the recent attack by the United States government on Binance Holdings Ltd. has opened potential challenges for the Ethereum network. Furthermore, market experts believe the stablecoins companies including Tether (USDT), which has a major user base via the Ethereum network, will be the next on the purge list.
Nevertheless, the $250 billion valued blockchain network is expected to succeed in the long term, and possibly challenge Bitcoin in the coming years. Worth noting that Bitcoin’s market cap is only three times bigger than Ethereum’s, despite the latter outperforming the former in on-chain transactions.
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