Hi, Alessia Pannone
The current price of Ethereum is above $2,400.
It had not risen above this threshold since April 27, but care must be taken not to overestimate this rebound.
In recent times, in fact, Ethereum has never shown any particular strength, so if nothing has changed it is possible to imagine that the new assault on $2,400 could fail like the previous ones. However, perhaps something has changed.
Summary
The assault on $2,400
Between the end of January and the beginning of February, the price of Ethereum broke downwards first through $2,500 and then $2,400.
In the following weeks it fell to below $1,800, but it bounced back almost immediately above $1,900.
Since then it has risen again, but in April there were as many as four failed attempts to climb back above the psychological threshold of $2,400.
The most significant attempt took place on April 17, but at the end of a nineteen-day rise that started from below $2,000.
That attempt failing was quite normal, while the two subsequent attempts were less so.
Although in theory the current attempt could also fail, there are however some important differences.
The first is that the current mini-rally has only been underway for six days, and therefore it could continue for a little longer.
The second is that it started only from $2,250, so in theory it could still have room for growth.
The third, and most important, is that the current rise has been going on uninterruptedly for six days, because so far all of these days have closed in the green.
The relationship with Bitcoin
It is perhaps even more interesting to analyze the trend of Ethereum’s price in Bitcoin (ETHBTC).
In fact, starting from April 27, Ethereum has continued to underperform Bitcoin.
The price of Ethereum has gone from 0.0303 BTC to the current 0.0293, returning to the levels of just before mid-March from this point of view.
At that time, at a certain point it started to rise again, reaching 0.0321 BTC shortly before mid-April.
There is therefore the possibility that Ethereum’s decline against Bitcoin is about to stop, and if this trend were to reverse in the coming days it is very likely that one of the consequences could be a stable return of the price in dollars above $2,400.
To tell the truth, however, the previous drop had stopped only at 0.0283 BTC, but if instead of the absolute peaks we take daily averages as a reference, the bottom was reached at 0.0288 BTC, a level not much lower than the current 0.0293.
The whales
In recent months institutional whales have accumulated Ethereum at a price below $2,150.
Although this leads one to think that they are not expecting growth much above that threshold, it also suggests that they are not expecting further short-term drops below that level.
This, however, would lend weight to the hypothesis that it may be difficult to break through $2,400, although the alternative could also simply be a period of sideways movement.
Moreover, as far as the short term is concerned, the volumes traded by institutional whales are low.
On top of all this, it should be added that yesterday the institutional whales who do trading opened long positions on Ethereum below $2,400, but today they already seem to want to close them in profit above this threshold.
It is also true, however, that the scenario in theory could still change, even quickly, and therefore what has been done so far could also be overturned by something unexpected.
In the absence, however, of unexpected events, it seems unlikely that the price of Ethereum can hold above $2,400 for long, although a possible week above that threshold would still be considered a positive thing by many.
The picture, however, remains not particularly good in the medium term, while only in the short term does it seem absolutely positive. In the long term, on the other hand, it changes completely, also because the underlying evolution of the Ethereum platform is still absolutely underway and has, in theory, enormous potential.
