Share:
  • 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.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Lido TVL pares recent gains as ETH, MATIC, SOL price rally wanes

Lido TVL pares recent gains as ETH, MATIC, SOL price rally wanes

Lido Finance Total Value Locked (TVL), the value of all crypto assets held in the protocol, reached $15.37 billion in the week to October 2, the highest level since August. 

More Cryptocurrencies News

ETH staking could gain short-term preference over bonds despite record yields

ETH staking could gain short-term preference over bonds despite record yields

Ethereum staking has seen a surge in the last seven days. Treasury bill yields are currently outperforming at the highest level since 2007.

More Ethereum News

Yield Protocol announces closure amid weak demand and regulatory challenges

Yield Protocol announces closure amid weak demand and regulatory challenges

DeFi platform Yield Protocol has announced its closure, citing weak demand for fixed-rate borrowing. The news comes against the backdrop of mounting regulatory pressure from global watchdogs. 

More Cryptocurrencies news

Ripple victory over SEC reaffirmed as Judge Torres denies regulator’s motion to appeal

Ripple victory over SEC reaffirmed as Judge Torres denies regulator’s motion to appeal

Ripple Labs victory over the US Securities and Exchange Commission (SEC) around mid-July has been reaffirmed after a federal judge rejected the commission’s motion to file an interlocutory appeal.

More Ripple News

Bitcoin: BTC recovery rally could be bull trap in disguise, here’s why

Bitcoin: BTC recovery rally could be bull trap in disguise, here’s why

Bitcoin (BTC) price remains unfazed even after the multiple spot BTC ETF delays from the US Securities & Exchange Commission (SEC). But investors need to be careful with the ongoing BTC rally as it could be a trap for early bulls.

Read full analysis

BTC

ETH

XRP