Ethereum Recovers From Dip: ETH Hits $3,900 For The First Time In Two Years
After Bitcoin (BTC) recorded a new all-time high (ATH), Ethereum (ETH) rallied above $3,800 before the price crashed over 10%. The second-largest cryptocurrency has recovered from the dip and reached $3,900 momentarily for the first time in over two years.
Ethereum Recovers And Rallies to $3,900
On Thursday, Bitcoin reached a crucial milestone after breaking above $69,000 and recording a new all-time high (ATH). Before the euphoria was over, the flagship cryptocurrencys price started to drop, trading as low as $60,000. Since then, BTCs price has recovered to hover between the $66,000-$67,000 price range.
Fueled by the bullish sentiment, Ethereum rallied above $3,800 before suffering a considerable price drop. The king of altcoins lost momentum and shredded about 12% of its price to trade at a price as low as $3,360, according to CoinMarketCap data.
After the dip was done, ETH started to show a recovery alongside Bitcoin. As reported by NewsBTC, a crucial resistance level to clear during this recovery was $3,600. Ethereum surpassed this support level and has maintained its price above the $3,800 range during the last 4 hours.
JUST IN: $3,900 $ETH
Watcher.Guru (@WatcherGuru) March 6, 2024
Ethereum reached the $3,800 support level twice in the last 24 hours. This price range was not seen since January 2022, and the regained bullish momentum propelled the tokens price to a higher milestone.
Ethereum hit $3,900 for the first time since December of 2021. The biggest altcoin briefly soared to $3,901 before falling to the $3,850 price range.
At the time of writing, ETH is trading at $3,834, representing a 1.6% price drop in the last hour and a 2% increase from 24 hours ago. Similarly, the token exhibits green numbers on longer timeframes.
Ethereums price performance has surged almost 16% in the past week, 65% in the last month, and an impressive 145% in one year.
ETHs market capitalization increased 1.55% to $459.7 million on the last day. Its daily trading volume has increased by 58%, with $52.16 billion in market activity in the previous 24 hours.
Whats Next For ETHs Price?
Many analysts have forecasted that ETHs rally is far from over. Analyst Altcoin Sherpa predicted that Ethereum could reach $4,000 when it breaks through the $3,000 price barrier.
Ethereums rally seems to be fueled not only by Bitcoins momentum but also by the general market dynamics. The date for the Dencun upgrade is approaching, and this update is expected to bring several technical improvements to Ethereums infrastructure,
Moreover, the possibility of Ether-based spot exchange-traded funds (ETF) being approved by the US Securities and Exchange Commission (SEC) in May has built expectations for Ether and the blockchains ecosystem.
Pseudonym trader Ash Crypto suggested to his Telegram subscribers that the price correction experienced after Bitcoins new ATH was not a reason to panic.
Related Reading: Ethereum Price Follows Bitcoin Surge, Why $4K Is Just A Matter of Time
The trader considers that the late long flush to cut all the leverage was expected and that a soon-to-come stabilization in BTCs price will propel the run of ETH and all altcoins. Similarly, he announced the incoming alt season after the price of ETH hit $3,900 and suggested that Ethereums next support level will be $4,200.
$ETH JUST MADE A NEW HIGH
$4,200 IS COMING NEXT !
GET READY FOR ALTSEASON pic.twitter.com/ZLirlerVDJ
Ash Crypto (@Ashcryptoreal) March 6, 2024
Text source: NewsBTC
