Ethereum (ETH) has been posting impressive gains recently, with it jumping 24.9 per cent to go from $2,618 on 3 February to around $3,270 as of today, according to CoinMarketCap data. 

The broader cryptocurrency market, including the likes of Bitcoin (BTC) and Solana (SOL), has also been experiencing similar rallies following the large dip we saw last month. 

Specifically, Bitcoin is up around 22.8 per cent over the last seven days but still needs to see gains of roughly another 50 per cent to hit the all-time high it set in November. 

What’s next for Ethereum?

Cryptographer and crypto analyst Dr Raullen Chai spoke to FXStreet on Thursday about what key levels investors need to keep an eye on for Ethereum and what could be in store for the world’s second-largest cryptocurrency by market cap. 

Dr Chai, co-founder and CEO of IoTeX, noted that a number of indicators are spelling out a bullish picture for Ethereum following it breaching the $3,000 level over the weekend, but he stressed that some indicators are signalling a loss of momentum. 

“There’s been a noticeable drop in ETH trading volume as it has been rallying in recent days. While this in itself shouldn’t be a major concern for investors or traders, it arguably indicates that Ethereum is weak and could be vulnerable in the event of a broader market pullback,” he said. 

“Furthermore, with the RSI exceeding 60, it is pretty close to being in ‘overbought’ territory, which suggests consolidation could be on the way before a continuation of the rally.

“In a similar vein, while the daily MACD (moving average convergence divergence) remains bullish, the histogram shows a tapering of momentum which indicates Ethereum could start to encounter more resistance and potentially go through a period of consolidation.”
Continuing, Dr Chai noted that $3,400 is a key resistance level and should this be breached, Ethereum can then target the $3,750 level and potentially the $4,000 level over the remainder of February.  

What’s been driving Ethereum’s gains?

Ethereum’s recent gains have come as the wider crypto market has rallied, partly due to investors buying the dip to take advantage of the low prices.

Russia’s announcement on Wednesday that it will be regulating crypto rather than banning it is the latest positive catalyst for Ethereum and other coins and tokens, as it could pave the way for more crypto adoption in the country. 

Interest rates should continue to be closely monitored over the coming weeks and months, as a hike – particularly by the Federal Reserve – would spell bad news for cryptocurrencies and other assets, such as stocks

On the other hand, the crypto market could rally if the Fed decides to keep rates low or increase them more gradually than investors and analysts are expecting.

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

XRP bulls in spotlight as SEC v. Ripple court filing hints at early closure

XRP bulls in spotlight as SEC v. Ripple court filing hints at early closure

XRP price could make or break based on the outcome of Ripple Labs case with the US Securities and Exchange Commission (SEC). In the latest twist and turn in the courtroom drama, Ripple (XRP), which is a cross-border payment settlement firm.

More Ripple News

Bitcoin struggles to fly despite clear skies up to $19,280

Bitcoin struggles to fly despite clear skies up to $19,280

Bitcoin price is struggling to overcome a small hurdle after a fresh start to the week. A closer look reveals that BTC could easily trigger a rally but is unable to do so despite a lack of resistance to the upside.

More Bitcoin News

AVAX's traders bet should be on Avalanche bulls triggering a 15% rally

AVAX's traders bet should be on Avalanche bulls triggering a 15% rally

AVAX price has broken out of a critical hurdle and pattern, signaling the start of a quick run-up. However, bulls face another blockade that needs to be overcome to trigger an extended rally.

More Avalanche News

Ethereum bulls come to the rescue with a plan to revisit $1,500

Ethereum bulls come to the rescue with a plan to revisit $1,500

Ethereum price set up a local top after a quick run-up over the last week. This move was followed by a tight consolidation that resulted in a breakdown, allowing sidelined buyers to step up. As a result, ETH is primed for a quick run-up.  

More Ethereum news

Bitcoin Weekly Forecast: Assessing likelihood of 80% rally for BTC before 2023

Bitcoin Weekly Forecast: Assessing likelihood of 80% rally for BTC before 2023

A massive bullish move is coming. In the last two articles, we have taken a look at why this is possible from a technical and on-chain perspective. In this weekly forecast, we will take a look at Bitcoin’s monthly performance for the last decade and determine if this bullish outlook is possible. 

Read full analysis

BTC

ETH

XRP