The price of Ethereum seems to be at a crossroads.
In fact, depending on whether it manages to break through the psychological barrier around $2,400 or not, the continuation of its trend could change.
In recent months, while Bitcoin has seen a relatively significant mini-rally, the price of Ethereum has not performed particularly well. However, this could also mean that it has accumulated still-unexpressed potential that Bitcoin has already exhausted.
Summary
The $2,400 level
First of all, it should be said that in the last three weeks there have already been two failed attempts to remain stably above $2,400.
The first occurred shortly after mid-April and failed almost immediately.
The second instead occurred in the last week of the month and failed within two days.
Starting from last Friday, there seems to be another attempt underway, which so far has not shown more strength than the previous ones.
However, there is a difference compared to the previous two.
In fact, the first came at the end of a rebound that started more than two weeks earlier from $2,000, while the second came after a very brief correction below $2,300. In other words, the first ran out of steam because the price had already risen too much, while the second was simply a repetition of the first.
Instead, the current move follows a rebound that began last Wednesday just above $2,200, so it appears to all intents and purposes to be a new movement rather than a continuation of the previous one.
The two scenarios
Although it is not clear at this time whether the price of Ethereum will manage this time to move back and stay stably above $2,400 or not, it is still possible to imagine two scenarios.
First of all, it should be said that according to several analysts this threshold is crucial for the price of Ethereum.
To be honest, there seems to be strong resistance not exactly at the $2,400 threshold, but in a range between $2,350 and $2,500, due to numerous sell orders already placed in that area.
However, at the same time, the recent inflows of capital into Ethereum ETFs suggest further growth potential.
For example, according to crypto analyst Ali Martinez, Ethereum “whales” have accumulated over 140,000 ETH in the last four days.
However, if the analysis is extended to the entire group of whales, it turns out that there have also been several sales recently.
Therefore, in reality, purchases and sales have alternated, although in fact between $2,330 and $2,440 buying seems to have prevailed.
The situation is therefore uncertain, since there are indeed signs of a possible rebound, but they are alternated with other signals that cast doubt on this hypothesis.
The forecasts
According to a chart published by analyst Ted Pillows, this would actually be a long period of consolidation.
Pillows believes that the price of Ethereum is continuing to move sideways, so much so that as long as the $2,400 level is not recovered and maintained, it could continue to show signs of weakness.
According to analyst Michaël van de Poppe, the key would be breaking above 0.032 BTC, although he admits that if this threshold is not recovered, it could continue to move sideways.
In other words, it is not even a given that a possible solid and lasting recovery of $2,400 would trigger a further rise, because it could also trigger a rejection generated by increased selling pressure.
ETHBTC
Indeed, the trend of the Ethereum price chart in Bitcoin terms is not giving particularly positive signals.
It should be remembered that at this moment it is once again Bitcoin that dominates the crypto markets, so it is difficult for Ethereum to have the strength to move independently.
From the end of February until mid-April, the price of Ethereum in Bitcoin terms actually rose from less than 0.029 BTC to 0.032 BTC, but once it reached that level it fell back down. It is currently just below 0.030 BTC.
It really does seem that 0.032 BTC is the key level below which the price of Ethereum is unable to move independently of Bitcoin’s trend.
Moreover, it should be added that the recent drop below 0.030 BTC was faster than the previous rise to 0.032 BTC, and this suggests that Ethereum at this moment does not really have the strength to resume moving independently. In addition, in such a situation it is also quite obvious that BTC ends up performing better than ETH.
However, it is possible to hypothesize that if the price of Ethereum were to break decisively and durably above $2,400, things could change. Therefore, both thresholds ($2,400 and 0.032 BTC) must be monitored, because although at this moment the second appears more important, it is the first that could allow Ethereum to reach and surpass it.
