Ethereum price increased by more than $2,000 after Elon Musk expressed his support for it along with Bitcoin and other cryptocurrencies. Investors are curious if this is a good time to trade since Tesla and SpaceX still have significant stakes on Ethereum and crypto overall.
ETH had an extremely difficult week, as its trading value dropped to $1,736 on Tuesday. However, Musk dropped a few statements in "The B Word Conference" that later boosted the crypto coin's value overnight.
As of time of writing, Ethereum soared to a $2,026 trading value and showed potential for a $2,500 price increase.
Elon Musk Sparks Hope of $2500 Rise for Ethereum Price
ETH is not the only crypto coin that benefitted from Musk's statement. Bitcoin (BTC) exchange rate rose from a $30,000 value to an intraday high of $32,895.
Candlestick graphs for these crypto coins are seen in Cointelegraph. ETH, in particular, showed signs of reaching a new level of all-time-high trading value at its current pace. Bitpanda Chief product officer Lukas Enzersdorker-Konrad said that as soon as the "big brother (Bitcoin)" finds its support level, "Ethereum will most likely follow suit."
For now, some analysts predict that Bitcoin could regain value and surge past $66,000 by the end of 2021. Full details for this prediction are available in this article.
Ethereum Price Prediction
ETH showed linear growth despite its occasional downside attempts. Independent market analyst Rekt Capital used "orange area" Falling Wedges to read the weekly performance and illustrated three bearish wicks and their ability to shied the value from falling lower.
$ETH has rallied +16% since rebounding from the orange area— Rekt Capital (@rektcapital) July 22, 2021
As long as ETH holds the bottom of the structure as support until the end of the week, #ETH will confirm a return to the structure after briefly losing it earlier this week#Crypto #Ethereum https://t.co/geXiqsZqJC pic.twitter.com/3qvXpcp3nk
Falling Wedges used a principle that as the trading price moves lower, the sequence growth also gets "lower highs" and "lower lows." However, if the price breaks above the Wedge's upper trendline, the value would spike in volumes.
Investors should keep their eye on this chart. An upside profit target could rise as high as the maximum wedge height, priced at $2500.
The tweet for this prediction also said that "as long as ETH holds the bottom of the structure as support until the end of the week, ETH will confirm a return to the structure after briefly losing it earlier this week."
While the ETH crypto coin shows a lot of potential gains in the long run, the trading risk is increased in the short-term technical setup. As previously mentioned, ETH would have "lower highs" and "lower lows" in the coming weeks, so investors could only earn little profit.
The price could fluctuate between $1,850-2,080 in the coming weeks before the potential bullish breakout. Wedges also have a failure rate of 8 to 11 percent and lastly, the bearish breakout has a failure rate of 15 to 24 percent.
In summary, if Ethereum value drops below the $1,800 trading value, the crypto coin has entered critical levels. On the other hand, if it breaks through $2082 at any point of this week, then the potential for big profits is on the rise.