Ethereum price prediction shows the second-largest cryptocurrency boasting $277 billion in market cap back in action after the drop to $2,240 on Wednesday. Although holding relatively unchanged according to price data by CoinMarketCap, ETH is on the cusp of reclaiming $2,300 S/R.
Ethereum Price Prediction: Can Ethereum Retest $2,400 This Week?
The technical structure presented on the four-hour chart reveals bullish momentum is building. Investors speculating on an immediate uptick to $2,400 capitalized on the drop on Wednesday, which may explain the knee-jerk recovery.
If Ethereum manages to climb above $2,300, it’ll need two key support levels to hold: the 20-day Exponential Moving Average (EMA) and 50-day EMA (the blue and red lines on the chart).
These levels need to stay strong to give buyers a chance to gather resources for a bigger push, not just to $2,400, but to the recent high of $2,800.
The Moving Average Convergence Divergence (MACD) is another indicator likely to come in handy in the next few days as Ether molds the trajectory to higher levels.
Looking out for a buy signal could give traders a timely head start, allowing them to increase exposure to long positions in ETH. The MACD line in blue will cross above the signal line in red, indicating that prices are set to go higher.
Read also: Bitcoin’s Coveted $88,000 Peak In 2024 Holds Despite Powell Scattering Hope For March Rate Cut
Ethereum price prediction chart | Tradingview
On the network activity side, new addresses created on the protocol surpassed 101,000 according to insight from Santiment, a blockchain data analytics platform. This growth reinforces the bullish outlook crypto users have for Ethereum. The network is growing 28% faster compared to 3 months ago.
🔥#Ethereum back in action! $ETH surges past $2,340, matching pre-dip levels.
With 101K new #ETH addresses daily & 484K unique ones interacting, network activity’s at a 28% faster clip than 3 months ago.
The graph by @santimentfeed speaks volumes: Ethereum’s not just… pic.twitter.com/W7Yz0TI5rO
— Leon Waidmann | On-Chain Insights🔍 (@LeonWaidmann) January 31, 2024
What’s Next As Ethereum Dencun Upgrade Nears Final Launch
The anticipated Dencun upgrade will go live on the final testnet on February 7 after launching on Sepolia — the second testnet this week. Developers are working to ensure that the biggest upgrade since 2023 successfully takes off, with essential features like “proto-danksharding.”
By implementing proto-danksharding, Ethereum will be able to cut down on the cost of transactions on layer 2 blockchains like Polygon (MATIC). The upgrade will also increase data availability while making the process cheaper by tapping “blobs,” a new innovative compartmentalized space.
Dencun launched on the first testnet, Goerli in early January. However, the upgrade did not finalize. After a successful second testnet launch, the upgrade will go live on Holesky, the network’s third and final testnet.
The community is expecting developers to announce the activation date for Dencun on the mainnet. This event could be a market mover, possibly taking place later this month or early March.
As earlier established, support at $2,300 and aided by the 20-day EMA and the 50-day EMA would mark a springboard for future major price increases targeting $4,000, especially those to be catalyzed by the Dencun upgrade.
Related Articles
- Top 3 Altcoins To Buy Today February 1: Solana (SOL), Jupiter (JUP), MANTA
- What Is The Price Prediction For ETH In February 2024?
- Jupiter Exchange: Why Is JUP Token Creating A Buzz?
