Ethereum Price Prediction: Is a New Rally Brewing?

Ethereum price experiences 1.5% increase in 24 hours, reaching $2,366, possibly boosted by Solana's first outage in a year.

Ethereum is on the brink of a $2,700 spike, but is this the start of a new rally?

Last updated: February 7, 2024 06:23 EST

The Ethereum price has gained by 1.5% in the past 24 hours, rising to $2,366 as the market’s biggest altcoin presumably benefits from Solana’s first outage in a year. ETH has been steadily rising, with a 2% increase in a week, 6% increase in a fortnight, and a 7% increase in a month. In the last 12 months, it has seen a healthy 43% growth. But with the market gearing up for a more bullish phase, Ethereum could experience additional gains soon enough.

Signs of Recovery for Ethereum

ETH’s chart is showing signs of recovery after a turbulent couple of weeks for the token. Its relative strength index (RSI) has risen above 50 for the first time in nearly two weeks, indicating positive momentum. Additionally, its 30-day moving average has turned upwards, indicating returning momentum.

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Source: TradingView

What’s also encouraging is that the support level for Ethereum has held strong even during recent dips. This support level has prevented any major fall, particularly to the lower levels seen in October and November. Much of this resilience is due to Ethereum’s high trading volumes, which far exceed those of any other altcoin, with the coin still seeing around $10 billion per day.

Indeed, ETH always enjoys considerable activity among whales, who are never too shy to buy the coin in substantial quantities. And while Ethereum is currently 51% down from its all-time high of $4,878, set back in November 2021, many argue that the market still undervalues it.

The Potential for Ethereum’s Price Surge

As the blockchain that accounts for 57% of the total value locked in the entire crypto ecosystem, Ethereum has tremendous potential. This percentage doesn’t even include Ethereum-based layer-two networks. Additionally, the next Bitcoin halving could instigate a bull market, benefiting Ethereum more than most other altcoins.

This bullish sentiment leads to a potential price prediction for Ethereum. The Ethereum price could reach $3,000 by the summer and push towards $4,000 by the end of the year.

Diversification with High-Potential Low-Cap Alts

While Ethereum remains a strong and established altcoin, those seeking quicker gains may be interested in newer and smaller cap tokens. These tokens, especially those in the listing process, have the potential for rapid growth. One such example is Sponge (SPONGE), an ERC-20 cryptocurrency that listed in April 2023 and rallied by as much as 150%.

Source: Midjourney

Sponge has recently launched the second version of its token, SPONGE V2, which runs on Polygon’s layer-two network. SPONGE V2 boasts an improved staking model, offering a variable rate of return that has reached 245%. The rate of return increases for those who stake their tokens for longer periods. Additionally, SPONGE V2 will serve as the native token for an upcoming play-to-earn racing game. This combination of features makes SPONGE V2 potentially more profitable than its predecessor.

SPONGE is currently available for trading on Uniswap, and its listing on other exchanges in the coming weeks could further boost its price.

Q&A: What Else Do Readers Need to Know?

Q: Is Ethereum a good long-term investment? A: Ethereum has proven itself as a leading blockchain and continues to show growth potential. With its high market share and promising fundamentals, many believe it is a solid long-term investment option.

Q: Are there any risks associated with Sponge (SPONGE) and other low-cap tokens? A: Low-cap tokens, including Sponge, typically carry higher risks due to their volatility and lower liquidity. Investors should conduct thorough research and understand the potential risks before investing.

Q: What factors could affect Ethereum’s future price movements? A: Several factors, such as market trends, regulatory developments, technological advancements, and adoption rates, could impact Ethereum’s future price movements. It’s essential to stay updated on these factors to make informed investment decisions.

Conclusion: Ethereum’s Potential and the Opportunities in Low-Cap Tokens

Ethereum has the potential for significant growth in the coming months, reaching new price levels. However, for those seeking faster gains, exploring high-potential low-cap tokens like Sponge (SPONGE) could be an option. These tokens offer unique features and the possibility of greater returns.

Remember, cryptocurrency investments come with risks, and it’s crucial to conduct thorough research and seek professional advice before making any investment decisions.

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

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Reference: – Solana’s first outage in a year – The next Bitcoin halving will help instigate a bull market – Sponge (SPONGE) – Blockchain’s total value locked of the entire crypto ecosystem – Ethereum price video analysis

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