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Ethereum lags behind Bitcoin and altcoins, trading below its 20-week simple moving average.
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Analyst Benjamin Cowen suggests Ethereum could rally to $3,000 amid positive market trends.
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Ethereum’s current support is $2,681, with potential resistance at $2,930 for a breakout.
Ethereum, the second-largest cryptocurrency by market cap, has been lagging behind other major cryptocurrencies, sitting well below its 20-week Simple Moving Average (SMA). With Bitcoin (BTC) and other altcoins already hitting their bull market support bands, crypto analyst Benjamin Cowen suggests that ETH might soon close the gap.
With the Federal Reserve’s expected rate cuts just weeks away, could Ethereum rally like it did in past years?
Ethereum’s Lagging Performance
Benjamin Cowen has highlighted an important trend in the crypto market. While Bitcoin and other altcoins have recently surged and are trading above their key support levels, Ethereum is falling below its 20-week SMA. However, the 20-week SMA is often considered a key indicator in determining the overall market trend.
#ETH is well below its 20W SMA while #BTC and #ALTs have already reached their bull market support band.
Seems like ETH could close this gap by the time the Fed cuts rates in a few weeks, especially if this repeats either 2016 or 2019 where ETH rallied into Sep 19-20. pic.twitter.com/HcB9sqi5RP
— Benjamin Cowen (@intocryptoverse) August 23, 2024
Meanwhile, the assets above this line are generally considered to be in a bullish phase, while those below might be seen as struggling. Right now, Ethereum is below this level, indicating it hasn’t fully joined the recent market rally.
Cowen is optimistic about Ethereum’s chances of closing this gap soon. He notes that in past years, like 2016 and 2019, Ethereum saw significant gains around mid-September. With the Federal Reserve expected to lower interest rates soon, this could create a favorable environment for Ethereum to rebound.
Lower interest rates often encourage more investment in riskier assets like cryptocurrencies. If this happens, it could help Ethereum move closer to its 20-week SMA and align with the strong performance seen in Bitcoin and other altcoins.
Ethereum Price Analysis
Ethereum’s price is currently stable, with traders remaining hopeful for a breakout. However, the immediate support level for ETH is at $2,681, while the resistance is at $2,700. As long as Ethereum’s price stays within this range, bears are in control. If Ethereum manages to break above the $2,681 resistance level, it could trigger a rally toward the next major resistance at $2,930.
As of now, Ethereum is trading at $2,751, showing a 3.22% increase over the past 24 hours. During the same period, Ethereum’s 24-hour trading volume surged by 49.15%, reaching $16.3 billion. The cryptocurrency’s market cap now stands at $331 billion.
