The price of Ethereum (ETH) has seen minimal movement in the past 24 hours, with its value at $1,750 representing a 3.5% loss in a week and an 8% dive in the past fortnight. Despite this, Ethereum remains up by 46% since the start of the year. Analysts have noted that the altcoin has formed a weekly golden cross, with its short-term moving average rising above its long-term average for the first time since 2019. This could signify that ETH is in line for a substantial rally in the coming months. However, the ongoing legal actions by the SEC against Binance and Coinbase (among others) could cast a shadow of uncertainty on the situation.
Looking at shorter timeframes on the ETH chart, its indicators continue to show weakness as it tries to bounce back from the previous week’s massive market-wide selloff. The 30-day average has declined below the 200-day average, indicating the downturn has not yet completely resolved. However, if one examines the chart over a longer span, Ethereum’s position looks more bullish, with the short-term average overpassing its long-term average for the first time in several years. This suggests that the altcoin may be at the beginning of a new bullish cycle.
Despite this optimistic outlook, the ongoing regulatory chaos in the market could delay the start of this cycle by several months. This gives the opportunity for investors to buy ETH at a significant discount before it experiences another period of sustained gains. The fact that ETH was not cited as a security in the SEC’s complaints against both Coinbase and Binance potentially reduces regulatory obstacles for future rallies.
Ethereum enjoys a strong position thanks to fundamental reasons, such as the introduction of staking and staking withdrawals, which has caused a considerable increase in locked-up ETH, thus raising demand relative to supply. Furthermore, Ethereum continues attracting more mainstream usage and adoption, such as Societe Generale using Ethereum for its euro-based stablecoin and Visa trialing the Ethereum blockchain for USDC payments.
In light of these factors, Ethereum could potentially recover lost ground and possibly return to the $2,000 range in the second half of the year. If it does usher in a new bullish cycle, we could see ETH move towards $3,000 by the end of 2023 and the beginning of 2024. For those seeking quicker profits, diversifying portfolios into newer altcoins and presale tokens may be a wise move. One token currently gaining attention for its eco-friendly focus is Ecoterra, an Ethereum-based recycle-to-earn platform. Its native token, ECOTERRA, could provide investors an incentive to go green and invest in eco-friendly projects, thus contributing to a greater focus on environmental issues within the crypto world.
Source: Cryptonews
