Soon Bitcoin’s supply will be halved, driving analysts to advise investors to purchase Ethereum (ETH) and other alternative cryptocurrencies.
The price of Ethereum has strengthened its favorable outlook during the middle of the week’s trading. The 4.8% increase over the past 24 hours coincides with a market-wide recovery led by Bitcoin, the most prominent cryptocurrency. In the aftermath of last week’s decline below $25,000, BTC surged by more than 7%, breaching $29,000 resistance.
The most prominent smart contacts token, currently trading at $1,815, is close to confirming an increase above $2,000 for the first time since early May. As a result of the Federal Reserve’s decision on interest rates, investors are reevaluating the potential for short-term gains on crypto markets, which is causing a substantial bullish reversal this week.
The regulator halted interest rate increases, which is anticipated to benefit-risk assets such as Bitcoin and Ethereum. In addition, Blackrock’s application for a spot Bitcoin ETF has continued to support the cryptocurrency market.
As reported this week, several institutional investors are entering the cryptocurrency market with various products. For example, Fidelity Investments supported the Tuesday launch of EDX Markets.
It is a cryptocurrency exchange platform that caters to brokers and investors who wish to avoid chaotic business operations like those that led to the collapse of FTX.
Ethereum Price Maintains Bullish Prospects as Buy Indicators Flash
The Ethereum price is above the applied moving averages, beginning with the 200-day Exponential Moving Average (EMA) at $1,728, followed by the 100-day EMA at $1,785, and finally, the 50-day EMA at $1,806.
The favorable outlook, which began immediately after the most recent decline to $1,625, is now on the verge of closing the gap to $2,000. In the meantime, a buy signal from the Moving Average Convergence Divergence (MACD) indicator is poised to support the anticipated rise above $2,000.
If buyers heed the MACD’s appeal to purchase Ether, the liquidity supporting this trend reversal would increase. A daily close above two critical levels would be required to validate the rally.
Initially, bulls must hold ETH above the 50-day and 100-day exponential moving averages. Second, short-term support at $1,800 is crucial for the ongoing price action between $2,000 and $2,000.
Consequently, new long positions in ETH may be required to wait until Ethereum has met the abovementioned conditions. Such validations would aid traders in avoiding bull pitfalls that may result in steep pullbacks.
If a trend correction is below $1,800, the 200-day exponential moving average (purple) at $1,728 and the potential support along the ascending trendline are vital areas to monitor.
With the Bitcoin halving scheduled to occur in less than ten months, analysts such as Michal van de Poppe are imploring investors to consider purchasing alternative cryptocurrencies such as Ethereum. Halving is the event that halves BTC miner rewards, thereby diminishing the supply to maintain a low inflation rate.
Buy your #Altcoins.
Ten months prior to the halving is the best moment.
This cycle is the big one.
Accumulate.
— Michaël van de Poppe (@CryptoMichNL) June 20, 2023Additionally, halving events have been associated with the beginning of bull markets. As supply and demand dynamics shift, the price of Bitcoin begins to rise, dragging the entire cryptocurrency market with it.
Investing in Ethereum and other altcoins now could provide investors with a golden opportunity to capitalize on the anticipated bull market in 2024 and 2025.
