Ether (ETH), the cryptocurrency that powers the smart-contract-enabled Ethereum blockchain, has pushed back to the north of the $2,000 per token mark on Monday, extending its gains since last week’s near-$1,900 lows to above 6%.
The rally comes as the broader crypto market enjoys tailwinds on Monday from a weakening US dollar on bets the Fed’s tightening cycle is over and amid optimism about accelerated crypto adoption in South America in wake of Argentina’s election of pro-crypto/Bitcoin President Javier Milei.
Ether bulls will be looking to see whether the cryptocurrency can this weak break to the north of a short-term downtrend that has been capping its price since earlier monthly highs in the $2,100s.
With major asset managers like BlackRock and Fidelity moving to set up spot Ethereum ETFs, the Ether supply back in deflation thanks to a recent improvement in on-chain activity, and with the macro backdrop seemingly turning into more of a tailwind for crypto, Ether price predictions are likely to remain mostly bullish.
Price Prediction – Time to Buy Ether (ETH)?
Ether price predictions turned substantially more bullish earlier this month when ETH vaulted to the north of a downtrend that had been in play since the April yearly highs.
The bulls have lost momentum in the last week and a half amid profit-taking following ETH’s failure to break above the yearly highs in the $2,100s, but should this level break in the weeks ahead, the cryptocurrency is set up for strong gains.
That’s because, above the $2,150 area, there aren’t any notable levels of resistance all the way until around $3,500.
If a crypto “Santa rally” really gets going into the end of 2023, traders could be looking at quick 70% gains in the months ahead.
That being said, now is probably a good time to buy ETH, even though the cryptocurrency is close to yearly highs.
Ethereum remains the dominant blockchain utilized by the Decentralized Finance (DeFi), NFT and broader web3 sectors and Ethereum scaling protocols like Arbitrum, Polygon and Optimism are helping the blockchain retain its dominance against upcoming layer-1 rivals like Avalanche and Solana.
With upgrades in the coming years likely to address Ethereum scaling problems, the blockchain is expected to experience significant further adoption.
That means Ether is a prime candidate to continue performing well during the upcoming crypto bull market that is arguably already well underway.
Ether Alternative to Consider
A fun new coin called Ether ETF Token ($ETHETF) is performing well alongside Ether and might be a good candidate to consider for risk-tolerant crypto investors looking to diversify their crypto holdings.
The token is designed to reward its holders based on news events relating to the upcoming expected approval of spot Ethereum ETFs in the US.
The token was last up around 15% in the last 24 hours, as per DEXTools, with a market cap of less than $1 million, suggesting plenty of room for potential upside should more investors pile into the token.
For what it’s worth, the token has $440,000 in locked liquidity and no concerning aspects to its smart contract, as per the DEXTools security audit, so investors shouldn’t be too fearful that the token is a scam.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.