Ethereum is in an “obvious accumulation range of all time,” this crypto analyst notes on a Twitter post on March 3.
Will Ethereum Spring To $5K?
Crypto analyst “Moon” thinks there could be more upside potential for ETH in the near future, strongly believing that many would want to get involved once the coin has broken out, rallying to the $5,000 and $7,000 trade range. As it is, ETH prices are within a bear formation in higher timeframes. Still, it is relatively solid from its lows in November 2022.
$ETH in one of the most obvious accumulation ranges of all time, lot of hindsight analysis will be done when its at $5k, $7k, whatever in a few years why you didnt buy more here, and people are flipping out over $100 moves pic.twitter.com/HS9fJuHTfx
— moon (@MoonOverlord) March 3, 2023
ETH is trading at around $1,580 and has failed to breach the $1,700 resistance level marking February highs. On the lower end, the coin has support at about the $1,500 line.
For the uptrend to take shape, buyers need to push ETH above February resistance lines and register new Q1 2023 highs. This would comprise a bullish breakout, setting the base for another leg up that may thrust ETH to new all-time highs above $5,000 to $7,000. It is a preview that ETH proponents hold, citing technical and fundamental factors.
According to the analyst, at present levels, traders and investors wishing to hold the coin for months and years should be buying the dips lest they be left by the ETH bull train.
Even though proponents are optimistic about the ETH’s prospect, it should be noted that it must break above the current range, ideally with expanding participation. Should this be the case, then not only will ETH rally above $2,000, but it stands to possibly more than double, rallying to retest 2021 highs.
At that time, ETH soared to retest $4,900, a high, more than tripling from 2017 peaks when ETH tested $1,300. Presently, the coin is above that critical high of late 2017, acting as support.
What Will Make Or Break ETH?
Still, traders and investors should proceed with caution. Several fundamental factors, as the events of 2022 reveal, could impact the crypto markets, including ETH.
For instance, despite decreasing inflation, the United States Federal Reserve has said it could increase interest rates as a tool. Besides, the economy remains weak with relatively weak labor conditions, factors that the central bank might consider.
On the more positive side, ETH bulls cite the network’s “burn rate.” So far, billions of ETH have been taken out of supply. Over the months, ETH’s inflation could drop even further, making the coin deflationary.