Tanya Abrosimova
Independent Analyst
- Ethereum may reach $7,500 if Bitcoin hits $50,000, expert believes.
- ETH/BTC stopped within a whisker of the channel support.
- ETH/USD needs to regain ground above $240.00.
ETH/USD is changing hands at $223.40, down over 5% in the recent 24 hours. The second-largest digital coin hit the intraday low at $218 before fresh buying interest helped to push it back above $220.00. Despite the recovery, ETH is trading within a short-term bearish trend amid high volatility. Currently, Ethereum's market value is registered at $24.9 billion, while an average daily trading volume is $9 billion.
Why Ethereum may hit $7,500
A popular cryptocurrency expert and a co-founder of crypto-oriented venture capital firm Placeholder, Chris Burniske, believes that ETH/USD may hit $7,500 once the new cryptocurrency bull cycle starts.
In a series of tweets, he explained, why ETH would cost $7,500 if Bitcoin reached $50,000.
If BTC goes > $50,000 in the next cycle, and ETHBTC returns to its former ATH, then expect to see ETH > $7,500.
He also added that once the boom begins, the mainstream would perceive ETH ‘the new kid on the block’, Thus the coin would get an additional boost and eventually outperform BTC.
Given ETH's outperformance of BTC over its lifetime (chart below again), not to mention smaller network value and strong on-chain economies, I see every reason for ETHBTC to surpass ATHs.
ETH/BTC: Technical picture
Meanwhile, ETH/BTC continues oscillating in a range limited by 61.8% and 50.0% Fibo retracement for the downside move from February 2020 high. The price came close to the lower border of the range at 0.0243 BTC during early Asian hours and recovered to $0.0246 by press time. If the channel support gives way, the sell-off may be extended towards $0.0240 and $0.0239, which is the lowest level since June 2.
On the upside, the recovery is effectively capped by psychological $0.02500 and 61.8% Fibo at $0.0253.
ETH/BTC daily chart
ETH/USD: Technical picture
On a daily chart, ETH/USD is supported by daily SM50 at $217.00. Once it is out of the way, the downside is likely to gain traction with the next focus on psychological $200.00 followed by a combination of daily SMA100 and SMA200 At $185.00. On the upside, a sustainable move above $240.00 is needed for the upside to gain traction. However, the downward-looking RSI on a daily chart implies that the bearish scenario is more likely at this stage.
ETH/USD daily chart
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.
Recommended Content
Editors’ Picks
Ripple wipes out weekly gains, experts comment on role of Ripple stablecoin
Ripple declined to $0.52 on Thursday, erasing all gains registered earlier this week. Ripple SVP Eric van Miltenburg’s comments on the firm’s stablecoin, and how it is expected to benefit the XRP Ledger and native token XRP have raised concerns among crypto experts.
Hedera HBAR slips nearly 10% after air is cleared on mistaken link with giant BlackRock
HBAR price is down nearly 10% on Thursday, partly erasing gains inspired by the misinterpreted link with BlackRock. Despite the recent correction, Hedera’s price is up 44% in the past seven days.
The reason behind Bonk’s 105% rise and if you should buy now Premium
Bonk price has shot up 105% in the past five weeks. A retracement into $0.0000216 or the $0.0000152 to $0.0000186 imbalance would be a good buying opportunity. Patient investors can expect double-digit gains from BONK that could extend up to 70%.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?