The cryptocurrency markets have been incredibly volatile in the past month, and Ethereum is no exception. Ethereum, the world’s second largest cryptocurrency by market capitalization, has had its price go through a roller coaster of ups and downs since the start of December.
At the time of writing, Ethereum is currently trading at about $1,317, and investors are beginning to speculate what Ethereum’s price might do in the remainder of the week. The bulls in the Ethereum market recently pierced a descending trend line which acted as resistance on three separate occasions since December 2.
This trend line breakthrough signaled to many bulls in the market that gains were on the horizon for ETH. Ethereum’s price has since increased 7% since the breakthrough and is surrounding the 50% Fibonacci retracement level. This price action has led some analysts to think Ethereum may be due for further bullish price action in the near future.
As of right now, the bulls are attempting to maintain their price action above the recently broken trend line. If they are successful in doing this, the next bullish target Ethereum could potentially hit is the 61.8% Fibonacci retracement level, trading at $1,416. If the bulls can reach this level, the market value of Ethereum would have then increased by roughly 7% over its current trading price. The volume indicator has shown increased transaction activity, but the number of bulls bidding for higher prices has been lower compared to days with heavy gains such as November 10 and November 30. Because of this, some analysts are being more conservative in their price action, noting that further evidence is needed before aggressive predictions can be made.
While there is uncertainty in regards to exactly how Ethereum will perform in the days to come, there are some analysts who believe Ethereum has the potential to take significant steps forward. This is based on the momentum the Ethereum market has gathered and the potential benefit institutional investors may have on the cryptocurrency. Institutional investors have long held the potential to pump significant amounts of money into the crypto markets and Ethereum is no exception to this. Analysts have argued that with increasing institutional interest, the Ethereum market could experience an influx of buying that could help drive the price up.
It is also important to remember that Ethereum is not the only driving force behind the cryptocurrency market. The DeFi sector has been incredibly active lately, driving ley players to look into more decentralized projects. Ethereum has been at the forefront of this movement, and its recent expansion signals to some that its price may experience further bullish growth. In the end, the exact price Ethereum can reach in the days to come is anyone’s guess. Despite the uncertain times, Ethereum continues to be one of the most watched cryptos and from the looks of things, it doesn’t seem like this trend will be going away anytime soon. Investors considering getting involved with Ethereum should do their own research and carefully consider their decision before taking the plunge.