Ethereum Rally is Possible Only if ETH Crosses US$1,500 Resistance

Ethereum Rally is Possible Only if ETH Crosses US$1,500 Resistance

Ethereum needs to strive harder to retain its position as the second-largest cryptocurrency in the world

Ethereum is set for the 'Merge' upgrade, a long-awaited reformation that the global investor community has been waiting for. The upgrade aims to transfer the blockchain from proof-of-work to proof-of-stake, a much more energy-efficient initiative, which might also impact the transaction speed and crypto trading experiences, making it more efficient. But the news of the launch has had no such positive effect on the investor community! The Ethereum price continued to fall with Bitcoin. Analysts attributed that ETH 2.0 will be another failure like the LUNA 2.0. Quite rightly so, investors have been considerably spooked by the Terra implosion, which further continued to adversely affect the Bitcoin and Ethereum prices. Initially, the Ethereum price started plummeting below the US$2,000 amidst the accelerating market volatility, in which all cryptocurrencies started experiencing all-time lows. Currently, at the time of writing this article, the Ethereum price revolves around US$1,000 resistance, according to coinmarketcap. But for it to trigger a bullish price rally, the ETH price has to cross the US$1,500, which seems quite unfeasible anytime soon!

Ethereum price is currently not demonstrating a bright picture for its future. Experts predict that investors should expect more losses in the table and its current price action demonstrate a downward slope and is moving further away from the essential historic price barriers. They continue to confirm that currently, almost all crypto prices are notoriously volatile, hence, investors should be extremely careful before trading digital assets. The crypto community had expected that the Ethereum upgrade would make the ETH token much more appealing and sustainable for widespread use. Instead, the decline in the broader crypto market cap has only given ETH all the negative attention, derailing all the excitement and anticipation around the ETH Merge launch.

Will Ethereum break its US$1,500 resistance?

Despite all the challenges and negative attention that crypto has garnered, Ethereum remains one of the largest cryptocurrencies in the market. Initially, in the first week of April 2022, when Bitcoin showed signs of an upward price slope, the Ethereum price also rose, giving hopes that Ether will pull up other altcoins along with it. But unfortunately, Bitcoin fell and also caused other cryptocurrencies, like Ethereum to plummet along with it. Now, where the price of Ethereum will go from its present stage is quite unpredictable, but there are speculations revolving around two different types of predictions.

Some experts believe that Ethereum will slide down below US$1,000 resistance, if in case, Bitcoin does down to US$20k again, which is much more likely at this point in time. Whereas, there are also several other analysts who believe that ETH might end the year 2022 with its price ranging from US$5,000 to US$7,000, despite all the market volatility. While this seems quite unrealistic right now, the volatility of the crypto market yields unpredictable results, which sometimes might generate positive effects for crypto believers.

Presently, the decline in the Ethereum price has traders and investors of the global economic and financial markets quite concerned. ETH has been bullish for months now and its drastic decline in prices has got investors quite worried. As months go by, the crypto shows move deeper into slumber. Bullish traders wish to see Ethereum holding its position above the US$1,500 resistance. Only time will tell how Ether will react after the ETH Merge upgrade is launched, but to sustain its position as the second-largest cryptocurrency in the market, the crypto has to demonstrate some signs to ensure that it still is a viable investment option.

Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.

Related Stories

No stories found.
logo
Analytics Insight
www.analyticsinsight.net