- Ethereum gains strong momentum and could rally further to $1730 in the higher-high chart formation.
- If the RSI strength continues and supports the current rally, ETH can retest the psychological levels of $2,000.
Over the last weekend, Bitcoin and the broader cryptocurrency market continue their rally with the BTC price surging all the way to $23,000. So far this month, Bitcoin has already gained by over 33 percent with a few altcoins registering an even greater rally and taking the crypto market cap above $1 trillion.
This is for the first time in the last five months since August 2022 that the BTC price has touched these levels. As per on-chain data provider Santiment, this price rise has been supported by large whale accumulation. The data provider noted:
The price rise has come as the large whale tier group of addresses holding 1,000 to 10,000 $BTC has collectively accumulated 64,638 ($1.46 billion) $BTC in the past 15 days.
Along with Bitcoin, its next competitor Ethereum (ETH) as well has seen a meteoric surge with its price shooting past $1,600. Since the beginning of 2023, the ETH price gains have mirrored that of Bitcoin’s i.e. 33 percent gains.
However, the biggest question among investors is can this bullish momentum push ETH to $2,000? Although the bulls seem to be in charge, the recent analysis by experts shows that trend exhaustion could be underway. However, popular crypto analyst Michael Van de Poppe expects the ETH price to rally a bit more before facing strong rejection. In his recent tweet, he wrote that ETH can “continue towards $1,700-1,730 before rejecting”.
— Michaël van de Poppe (@CryptoMichNL) January 21, 2023
If the bulls can ride the momentum, ETH can create a higher high going ahead. But if the buyers fail to gather momentum, we can expect a moderate strand reversal. For the bears to steal the momentum from the bulls, they need to push the ETH price under $1,568.
Can Ethereum (ETH) Price Touch $2000 In This Rally?
Some market experts continue to believe that the uptrend for Ethereum (ETH) isn’t yet done. ETH bulls have to stage a rebound to force the RSI to create another high in the overbought region. If the RSI levels support the upward climb, any bearish momentum downside will be refuted and it would make ETH retest the psychological levels of $2,000.
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As of press time, ETH is trading at 0.33 percent up at a price of $1,624 and a market cap of $199.9 billion. On the other hand, the Ethereum developers are all gearing up for the Shanghai upgrade which is likely to happen by February end. The Shanghai upgrade will unlock all the staked ETH in the Beacon Chain leading to greater ETH supply in the market.
As per details provided by on-chain data provider Glassnode, a total of 16.101M $ETH is staked on the #Ethereum Proof-of-Stake beacon chain (13.4% of circulating). “Of this, 11.408M $ETH is via staking service providers, representing 70.86% of the total,” they added.