The crypto market is consolidating following a sharp recovery from last week’s bottom prices. Both Bitcoin and Ethereum are in the green on Tuesday, donning miner gains in the last 24 hours. The largest cryptocurrency holds above the critical $64,000 level while Ethereum changes at $3,080.
Should bulls strengthen their grip, crypto prices will eye higher weekly closes. Ethereum must break key hurdles at $3,200 and $3,500 to reach the coveted $4,000 target.
As discussed in the BTC/USD price analysis, an increase in the number of put options hints at positive sentiment. A breakout to $67,500 may occur this week, with Bitcoin likely to settle above $70,000 before the end of May. Projections are that, BTC is poised for a parabolic rally to $100,000 in 2024.
ETHBTC: Has Ethereum Price Bottomed Against Bitcoin?
The ETHBTC pair changed at $0.04825 during US business hours. This marks a 4.38% move from the recent bottom of $0.04622. The current price level highlights an 8% decline from April’s peak of $0.05249.
Based on the outlook of the Moving Average Convergence Divergence (MACD) indicator, the path of least resistance is downwards, at least for now.
The pairs’ recent break below the ascending trend line as seen on the chart accentuated the bearish grip. Due to the sell signal, more losses are anticipated, with Ethereum likely to remain depressed against Bitcoin.
Traders are likely considering increasing their exposure to short positions citing ETHBTC’s position under all three bull market indicators—the 20-day Exponential Moving Average (EMA), the 50-day EMA, and the 20-day EMA.
Two subsequent death crosses in the four-hour range further worsen the technical situation. However, potential support areas lie at $0.048 and $0.047. If push comes to shove, and selling pressure rallies, Ethereum may seek liquidity from lower levels at $0.046 and $0.045.
Assessing ETH Fundamental Structure
IntoTheBlock’s IOMAP model reveals potential selling pressure in Ethereum’s recovery path to $4,000. Based on the model, the region between $3,075 and $3,166 is the largest seller congestion zone. Approximately 3.34 million addresses bought 5.68 million ETH in this range, suggesting potential sell side pressure as prices move up.
The narrowing support as reflected by the small green circles could spell doom for ETH if potential pressure spikes on the sell side.
Nevertheless, a break above the fundamental hurdle could propel Ethereum above $3,500 resistance, thus paving the way for movement to $4,000.
The persistent uptrend in the number of newly created addresses as portrayed by Santiment is another bullish factor to consider when trading Ethereum. According to the feed on X, the new addresses count soared to 196,700 with the largest move falling between May 4, and 5. This also also the largest daily record since October 2022.
Although a deceleration in the rate is currently noticeable, with the drop to 115,000 on May 6, the general outlook remains solidly bullish. The surge in addresses hint at an influx of funds into Ethereum, which may potentially ignite a rally to $4,000.
The post ETHBTC: Ethereum Sees Spike In Unique Addresses As Bitcoin Consolidates, $4,000 Beckoning? appeared first on CoinGape.
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