Ethereum price is doubling down its bullish efforts after reclaiming support at $1,900 and extending the leg to $1,950. The second largest smart contracts token, powered by a proof-of-stake (PoS) consensus mechanism, is up 1.6% on the day and trading at $1,945 on Monday.
Bitcoin price is also slightly in the green with 0.5% in accrued gains over the last 24 hours and doddering at $30,660. As analyzed earlier, BTC is poised for a massive breakout to $35,000 and $38,000, but first, the resistance between $31,000 and $32,000 must come out of the way.
Ethereum boasts approximately $8 billion in its 24-hour trading volume and a market cap of $234 billion. Its immediate downside is protected by the recently reclaimed ascending trendline support, but if declines intensify, it would be prudent for investors to anticipate a minor and brief retracement to stronger support at $1,800 and $1,650, respectively.
How Will Investors React To Ethereum Price Lifting Above $2,000?
The sudden interest in the crypto market by institutional investors like Blackrock, Fidelity Investments, and Cathie Wood was a substantial boost for the crypto market in June.
Blackrock’s decision to apply for a spot Bitcoin ETF has, within a few weeks, encouraged other players like Cathie Wood and Fidelity to cast their nets with the hope of operating a similar product in the US.
Market participants believe Blackrock has a higher chance of getting the coveted approval, which the Securities and Exchange Commission (SEC) has managed to avoid for several years, citing market volatility and manipulation, among other bottlenecks.
As more institutional investors stream into the market, major digital assets like Bitcoin and Ethereum are bound to react positively. Retail investors also see this as a signal that the market is on an upward trajectory.
Ethereum’s sturdiness from support at $1,650 can mainly be attributed to the rise in interest from institutional and retail investors combined.
It is worth mentioning that with Ethereum holding above $1,900 and particularly on top of the dotted rising trendline, the path with the least resistance gradually turns to the upside. That said, the anticipated breakout above $2,000 is, at the time of writing, a matter of when and not if.
Evaluating Ethereum Price Bullish Outlook
Two indicators affirm the bullish outlook for Ethereum price, starting with a buy signal from the Moving Average Convergence Divergence (MACD) indicator. This call to buy Ether triggered on June 20, has managed to keep investor interest intact, but resistance at $2,000 is the biggest stumbling block, at least for now.
A second bullish signal emanates from the SuperTrend indicator, which like the MACD, flipped in support of an Ethereum uptrend on June 20. Like a moving average, this indicator overlays the chart, but it also integrates readings from the true average range (ATR) to gauge the volatility in the market.
As long as the SuperTrend is trailing Ethereum price, recovery to $2,000 will remain steady. Traders may want to confirm ETH closes the day above the dotted trendline and the buyer congestion at $1,900 to validate the expected breakout beyond the psychological resistance.
The fear of missing out (FOMO) could suddenly be the driving force for Ethereum price targeting the ultimate move to $3,000 and subsequently climbing to the all-time high of $4,878.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/ethereum-price-prediction-as-eth-takes-on-2000-is-this-the-bullish-escape-to-5000/