Ethereum in Hot Pursuit of New ATH: Analysts Are Extremely Bullish
Over the past few hours, ETH has managed a bullish breakout above several key resistance levels while BTC continues to trade sideways.
The second-largest cryptocurrency by market cap has been showing continued strong upward price momentum since the weekend, prompting crypto pundits to anticipate that ETH could soon set fresh highs and follow bitcoin’s recent parabolic rally.
ETH has gained over 12% in the past 24 hours and surmounted the $1,250 and $1,280 resistance levels against the US Dollar. As of this article’s writing, ETH is trading well above $1,300, which is just a hair from the previous ATH at $1,400.
The bulls are expected to gain strength in the next few sessions due to mounting FOMO as traders expect ETH to breach its previous price record shortly.
What is Pumping ETH Price?
ETH started a strong increase above $1,200 in the past 2-3 sessions and has even outperformed BTC to move further into the green. The current resurgent price action is likely buoyed by a convergence of strong fundamentals and market dynamics.
For one, the growth is driven by the ongoing rollout of ETH 2.0, which will boost the ETH network’s ability to handle new internet use cases in the crypto world.
The transition to a proof of stake consensus is also expected to foster the DeFi economy’s growth by reducing transaction fees and congestion on the ETH ecosystem. The imminent ETH 2.0 upgrade is already causing a buzz in the crypto space, generating more capital for the blockchain project.
What’s more, many investors are expecting the top-ranked altcoin to soar to even loftier heights as the Feb 8 launch date for the Ethereum CME futures approaches. According to Tim McCourt, the imminent Ether futures will provide crypto enthusiasts with a valuable tool to trade and hedge the growing altcoin, CME Group Global Head of Equity Index.
Finally, positive news emerging from the regulatory front over the last 24 hours is expected to boost ETH and the rest of the cryptocurrency sector. As per a statement from incoming US president Biden’s team on Jan 18, Gary Gensler, a former crypto professor at MIT, has been selected to take the SEC’s helm.
The announcement will likely provide a short-term boost in sentiment to the crypto space, possibly providing ETH’s impetus to breach its former ATH finally.
Analysts Are Bullish On ETH
Analyst CryptoCactus recently presented a bullish outlook on the ETH price action, asserting that the bulls just needed to flip $1,250 into support to propel the altcoin to fresh highs.
The analyst’s forecast has proven to be spot on, as ETH has gone on to rally past $1,370 after the price steadied above the new-found support at $1,250.
Another analyst and wealth manager at Moonrock Capital recently predicted that the ETH price would pump to $3K in two weeks as soon as bulls take out the former ATH.