ETH price regained $ 2,000 on Monday, raising expectations that the recent rally will signal further upward moves amid bullish fundamentals and technicals.

The world’s second largest cryptocurrency by market capitalization rose up to 4.96% to $ 2,083 just before the London session. This upward move was also part of a market-wide upward correction that began late Saturday after the ETH / USD price had fallen as low as $ 1,717.

On Sunday, the pair closed the session at $ 1,984, followed by another surge above $ 2,000 on Monday. Traders see this level as support for further upward momentum across the board.

Independent market analyst Research 25/7 Note:

“ETH is targeting US $ 2,045 first and is riding a recovery wave. After the decline, ETH is consolidating and seems ready to break higher. “

The short-term outlook from ETH begins around 11:00 a.m. (Synthetic Team time) | Source: TradingView, research 24/7

The market analyst Edward “Teddy” Cleps also highlighted a bullish scenario for ETH with regard to the “secret EMA cloud”. This pattern refers to an exponential moving average indicator that regularly identifies potential entry and exit points in a trade.

Last week ETH slipped beneath the support of the lowest wave in the EMA cloud. This week, the world’s second largest cryptocurrency regained it, encouraging Cleps to expect longer upward momentum.

Source: NFTeddy

Relate to each other With Bitcoin

The ETH price also rose as it maintained a positive correlation with Bitcoin.

The bulls were encouraged by Bitcoin’s ability to maintain the uptrend above the critical $ 30,000 support. The leading cryptocurrency rebounded to an intraday high of $ 35,301 ahead of today’s London session. The latest move caused other correlated assets to rise at the same time, including ETH.

BILLIONrelationship between Bitcoin With the Altcoins | Source: Crypto Watch

Vijay Ayyar, head of Asia Pacific at Exchange Luno, told Bloomberg:

“Bitcoin is pretty well defending $ 30,000 with multiple tests at this level last month. BTC has also seen strong downward pressure around the defended levels, so this looks pretty bullish at this point. “

Hard fork london

Further upward trends in the ETH market followed after news of a major protocol upgrade known as the London Hard Fork in July, which aims to transform Ethereum from a power-intensive PoW network into a “greener” and faster PoS network.

The hard fork will introduce new Ethereum Enhanced Protocols (EIPs), which will make the fee structure cheaper and the blockchain more scalable to handle more transactions. These two problems are the bottleneck preventing the rollout of Ethereum, even if it remains the most widely used blockchain in decentralized finance (DeFi) and the booming stablecoin sector.

Overall, the core proposal from the London Hard Fork – known as EIP-1559 – would limit Ethereum gas fees while controlling fluctuations in transaction fees across the network.

YouTuber Young and investing said:

“The London Ethereum Hard Fork consists of 5 EIPs:
1.EIP-1559: Fee market change for ETH chain 1.0
2. EIP-3554: Difficulty bomb postponed to December 2021
3.EIP-3529: Minimize Refunds
4.EIP-3541: Rejection of new contracts from byte 0xEF
5.EIP-3198: BASEFEE opcode “

EIP-1559 also brings the “scarcity” feature to the Ethereum ecosystem, which is currently a major upside in the Bitcoin market. As is well known, the leading cryptocurrency actively competing with the US dollar as the best inflation hedge thanks to its limited supply of 21 million units.

Unlike Bitcoin, ETH has no upper limit on supply, which makes it less attractive as a store of value than unlimited printable fiat currencies. The circulating supply to ETH is at the time of writing 116,474,762 ETH.

Deliver tighten

EIP-1559 proposes to burn off some of the fees charged by Ethereum users, thereby introducing a mechanism for the first time since its inception to take ETH tokens out of circulation.

In the meantime, Ethereum’s transition from PoW to PoS means replacing miners with validators. To become a validator on the Ethereum network, users must lock at least 32 ETH on the network’s official smart contracts. This also reduces active care at ETH. As a result, analysts see this as a sign of another bull run that will boost demand for the ETH token against falling supply.

“Based on the planned London hard fork upgrade (EIP 1559) and the proposed switch to Ethereum 2.0, investors will definitely prefer the coin even more,” said Domenic Carosa, founder and president of Banxa – a fiat-to-crypto gateway solution – agreeing.

“This support is reinforced when the base fee (one of the two components of the fee structure included in the London upgrade) is burned. This burning effect will limit the supply to ETH and put an end to the endless supply crises at ETH. “

Ethereum 2.0’s smart contract has so far raised around 5.93 million ETH (worth around $ 11.9 billion).

ETH price increase up to $ 4k– $ 5k

Carosa added that he expects ETH to hit $ 4,000-5,000 by the end of December 2022, while sounding the alarm about conflicting short-term trends.

The ETH market is currently in limbo, neither a bull nor a bear. Carosa said more mature investors started buying ETH near the lows with a long-term hold perspective. However, the accumulation is not strong enough to continue the uptrend in the short term.

ETH Consolidation in the $ 1,964-2,153 range | Source: TradingView

ETH is floating in a historical range defined by $ 2,153 as temporary resistance and $ 1,964 as temporary support. At the same time, ETH viewed the simple 200-day moving average (200-day SMA; golden wave) as the lower limit for a possible upward movement.

Accordingly, ETH will rise to $ 3,500 in the upcoming sessions, with the wedge top at $ 1,500 being viewed as a bullish breakout point. The maximum height of the model is $ 1,800.

You can see the ETH price here.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Minh Anh

According to Cointelegraph

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