The cryptocurrency market looks like it is getting hold of its bearings again as it is now in the green, Ethereum included. However, crypto is not out of the woods just yet and Ethereum can still slip.
Ethereum Price Prediction
Currently, Ethereum had a huge jump at 3.80 percent as of writing today, July 4, according to Coin Market Cap.
Bitcoin also is in the green at an increase of 2.02 percent; unfortunately, Dogecoin's price fell by -0.14percent over the last 24 hours.
In the past seven days, ETH had an increase of 26.55 percent, a huge leap compared to BTC's 7.47 percent improvement.
The positive short-term outlook of ETH at $2,317.64, has investors and traders anticipating a potential spike in buying pressure, propelling the prices to a resistance level at $2,460. Should the buying pressure continue, it looks like the second-largest cryptocurrency can break past the resistance level and $2,552 and $2,640 might be the next target for the bulls, FXStreet says.
At the extreme, the bullish sentiment can propel Ethereum to hit the range high at $2,912, but that's quite optimistic.
However, if ETH finds itself with holders selling off too early it could be hitting $2,045 and this could indicate a lack of buyers in the market. Should this be the case, ETH might need to adjust its demand barrier at $1,965.
If it does slip again, with volatility being the nature of all cryptocurrencies, and finds itself at $1,804 followed by an inability to flip it promptly, expect Ethereum to slip as low as $1,738.
According to Yahoo! Finance, Ethereum could very much experience a major correction to below $1,000 before the end of this year.
Overall prediction for the long-term of the cryptocurrency market still looks pessimistic despite the short-term wins. A glimmer of hope, Yahoo! Finance does offer for Ethereum traders and investors is the upcoming EIP 1559 update scheduled for later this month.
The aim of EIP 1559 is to make transaction fees less volatile and more predictable by creating an algorithmic model to automatically adjust costs, CoinDesk explains.
For the short term, this major update will likely give ETH another boost and a hype-fuelled rally will be happening approaching the event. But expect lows afterward as the high prices may have traders exiting to take profits.
Ethereum Relying on Bitcoin
Keep an eye out for Bitcoin as well.
An Ascending triangle is about to break. If we can break with good volume & hold above it we can expect to see #Btc in 40k$ range again in next some days! Keep an eye for supports & resistances in case its a Fakeout! #Bitcoin 🚀🚀 pic.twitter.com/T37VvxJVKQ— Crypto Monkey (@DaCryptoMonkey) July 4, 2021
As Bitcoin tries to gain a foothold in the $30,000 to $40,00 price range with a rejection to break past $36,500 last week, a slip up could mean more struggle across the board, Yahoo! Finance warns. Should Bitcoin lose the $30,000 level of support, the rest of the market will struggle to find its footing to go up.
This can be observed with Bitcoin holding its dominance as the largest cryptocurrency in the market and experiencing a somewhat steady rise past $30,000 since its steep drop in May, the rest of the market was able to follow along and rise as well. The opposite can happen too.