Market consolidation prompts analyst to forecast Ethereum potentially reaching $2k.
According to FxPro senior analyst Alex Kuptsikevicha, Ethereum’s price could potentially drop to $2,000, as the altcoin has experienced an over 8% decrease in value over the past week.
The cryptocurrency market is currently experiencing a period of low volatility, with the total market capitalization remaining at around $1.6 trillion for the third day in a row. At the same time, stock market equity indices have significantly declined within the last 24 hours.
However, these developments have had minimal impact on cryptocurrency investors. Kuptsikevich believes that the decrease in stock values is more a result of individual corporate stories rather than an indication of a global shift in market sentiment.
Bitcoin, on the other hand, is benefiting from this consolidation phase, with its market share once again surpassing 50%. Meanwhile, Ethereum has found itself at the lower end of the consolidation range it has been in for most of December. Kuptsikevich predicts that Ethereum is displaying signs of a possible drop to the $2,100 level, which marked the upper end of its consolidation phase in November.
Kuptsikevich suggests that a further decline towards the $2,000 mark is possible, citing the inherent volatility of the cryptocurrency market. This potential dip could mirror a similar retracement in Bitcoin to the $37,500 level.
In addition, the Securities and Exchange Commission (SEC) has delayed its decision on BlackRock’s application for a spot Ethereum ETF until March 10. While some experts remain optimistic about the ETF’s approval by May, with a probability of 50% to 70%, others are cautious due to potential regulatory resistance.
The introduction of spot Bitcoin ETFs in the United States has expanded the appeal of cryptocurrencies to a broader audience. According to Coinbase’s head of institutional, this marks a potential shift towards the mainstream adoption of digital currencies.
However, the influx of new capital into new cryptocurrencies is expected to be a gradual process that unfolds over several months or even years.
