With current recovery momentum, can ETH reach $4,000 by July this year?
Ether (ETH) price rallied to retest the $3,000 support on February 9 after hitting a three-week high.
ETH price climbs to three-week high
So far, ETH has rallied about 50% after the ETH/USD trading pair bottomed near the $2,150 region on Jan. 24.
Daily ETH/USD price chart | Source: TradingView
ETH price surged on February 7th, partly due to KPMG, one of the top four accounting firms in the world, notification that it is adding bitcoin (BTC) and ether to its Canadian branch’s balance sheet. Bitcoin rallied to more than $45,500 after the news was announced, marking its all-time high in almost a month.
However, the Big Four accounting giant has chosen not to disclose its exposure to the Bitcoin and Ether markets. But KPMG claims it helps its client group “navigate” the world of crypto assets.
Anthony Pompliano, a partner at Pomp Investments, calls KPMG’s move “an action towards the future”. notice that their participation will give confidence to clients who may be considering adding crypto assets to their balance sheet.
“It is likely that corporate demand will continue to boom for a sufficiently long period of time and these assets, along with long-term holders, will benefit from sustained buying for years and decades to come.”
Could ETH reach the $4,000 region?
Ether price recently recorded its seventh 50% drop in history amid what people are calling “crypto winter.” But the ETH/USD pair recouped half of that loss as it surged from a low of $2,150 to a high of $3,234 in less than three weeks.
Daily ETH/USD price chart with Fibonacci based support/resistance levels | Source: TradingView
“ETH fell 94% to its ATH during the crypto winter of 2018 compared to a 50% drop in March 2016, the market rallied in just 67 days. Currently, Ethereum and the broader crypto ecosystem are looking very different from 2016-2018. However, if history repeats itself and a freeze period similar to 2018 sets in, we could see ETH back in the $4,000 range as early as July of this year.”
ETH tranches from ATH | Source: Arcane Research
So did Chris Burniske, a partner at Placeholder, a New York-based venture capital firm show The bullish outlook for Ethereum, based on the transition to a proof-of-stake model, is expected to happen later this year.
“2022 could be a great year for ETH if consolidation goes according to plan and the market structure shifts sharply from PoW to PoS.”
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