Cryptocurrencies had to navigate choppy waters over the course of the last year as prices continued to plummet, causing many to panic at the prospect of losing all their capital. However, the beginning of 2023 brought renewed hope as values started to go on an ascending path again. However, the incoming pressure from regulators and lawmakers temporarily destabilized the marketplace, as traders began expecting significant impediments and liquidity loss. This was especially in the context of loss of liquidity.
However, the digital finance sector surprised everyone by rebounding instead of going down, and now most investors expect a bull run. Ethereum, the second most popular cryptocurrency in the world, had one of the most notable ascensions, climbing by about 60% since the beginning of the year. This is the best time for investors who have been waiting for a more dynamic environment.
Correcting gains
No climbing can occur without gain correction occurring in the next couple of days. While this tendency is a bit more intense for cryptocurrencies, all markets deal with this. The usual figures you can expect are somewhere in the 10% range. The Ethereum market is currently dealing with such an event. The coin is correcting all gains falling below $1,950 at the moment.
However, this isn’t necessarily a negative thing, as the prices are actually just as likely to spring back into action afterward. After a move below $1,920, the price finally went below $1,900. Some believe it might fall even lower, in the $1,890 range, but most are confident that’s about as low as it can get. Analysis shows a bear trend line forming near $1,925, close to the approximately 62% Fibonacci retracement level.
If ETHER manages to move above $1,945, it could push closer to $2,000, as that’s likely to be one of the last resistances that the coin has to overcome. The next obstacle would be around the $2,120 level, after which the path will be relatively clear all the way to $2,200.
Strategies
So, now that it’s becoming clear that cryptocurrencies are on the rise and the market will continue to improve, investors are getting ready for the approaching bullish tendency. Many have started growing their portfolios, buying more assets and looking to diversify. Now is the best time to do so, as prices are still relatively low, so you can sell higher later after they record significant gains.
Ethereum remains one of the most popular cryptocurrencies in the world, with many investors choosing to add it to their list of holdings. It’s not just that the crypto has good value, provided by the fact it has one of the highest market capitalization levels; there’s also the fact that the blockchain is well-known for its innovations and developments in the fields of decentralized finance and applications.
It’s these technologies that attract many investors who want to invest in something they know will last. Bitcoin is also naturally very popular, as the first crypto to ever appear on the market. Its continuous growth, making it one of the most powerful assets in the entire trading world, shows that it will continue to be a favorite among investors from all over the world.
Momentum
Price climbs are not the only thing that matters in the crypto market; it’s also important that the momentum builds and continues to help the market. This way, a cryptocurrency can record sustained development over a longer time. Ethereum has a solid support level at $1,900 and is set to make a resurgence shortly. Investors are looking towards the growth with enthusiasm, as it signifies a strong potential for future gains. The RSI figures show there’s significant potential for a price momentum event at the moment, with the trends remaining upward, which will further boost the bullish tendency.
The ascending trendline will also play an important part and is currently in development. Historically, These figures are key indicators of bullish tendencies, as they show that prices are likely to become even more elevated. Nonetheless, investors must remain aware that retracements could still intervene along the way.
There are additional safety nets for Ethereum at $1,800 and $1,600, meaning that if the price were to drop that far, it would have support in those areas and climb back to previous levels considerably faster and with fewer impediments. These figures will also help if the sentiment returns to bearish levels, even if only temporarily.
If the psychological $2,000 threshold is breached, it will manage to successfully pave the way for a bullish momentum, and things will speed up. Yet, if you’re one of the investors waiting for this catalyst, you should remember that a correction remains likely.
CME contracts
Despite this somewhat uncertain outlook, with short-term volatility still likely, most investors are optimistic about the ways in which the market is developing. Ethereum appears to have a bright future ahead of itself, especially as it continues to drive innovations. As such, traders can expect some truly incredible times ahead, as the prices are bound to remain bullish.
One clear indication of this is that Ethereum CME Contracts have recently hit the $46.8 billion milestone over the last month. Following the negative trends of the previous year, it appears that institutional investors are ready to give cryptocurrencies, and Ethereum in particular, a second chance. Data shows that this investor group has recently amped up its efforts to trade a large variety of financial instruments, many of which are cryptocurrencies.
CME futures have received much attention in particular, but the trend has been definitively linked to the overarching tendency recorded over June towards a bullish movement. Bitcoin had a positive tendency toward growth as well. MBTs, Bitcoin micro futures, recorded a boost of over 21%, trading at around $702 million.
The cryptocurrency market is still recovering after its difficult time last year. However, it has already begun to show signs of significant improvement. As the prices continue to grow, investors will have to come up with comprehensive strategies to ensure their portfolios remain safe.
