Ethereum (ETH) bounced off the $2,500 level on Wednesday and shows signs of continuing this bull reversal attempt while altcoins undergo correction. This shift in dynamic could suggest that Ethereum price is attempting to revisit $4,000. Another reason for ETH’s resilience and new-found momentum could be declining Bitcoin dominance, which shows signs of a further correction.
Ethereum Price Today Bounces While Bitcoin Dominance Drops 6%
Bitcoin dominance has crashed 6% in the past 11 days, indicating that capital is migrating to rest of the crypto market. Often declining Bitcoin dominance has seen the start of an alt-season phase in which Ethereum price gains tend to go parabolic.
With Bitcoin’s market share dropping and ETH’s value up 1.33% today, investors can expect the ongoing bounce to extend, potentially to key psychological levels such as $3,000 and $4,000 or all-time highs (ATHs).
Ethereum price forecast is bullish, but will technical analysis support ETH to revisit $4,000?
Ethereum Technical Analysis: Will ETH Price Hit $4,000?
The three-day chart shows Ethereum price is up 27% since the February 3 swing low of $2,125. This bounce is likely going to continue as Bitcoin dominance falls. The next key resistance zone stretches from $3,119 to $3,285, encapsulating the 50-day and 200-day SMAs and the previous monthly Volume Weighted Average Price (VWAP).
Overcoming this hurdle will set the stage for extending Ethereum price to revisit the equal highs formed at $4,093. A sweep above this level will trigger a buying spree due to short liquidations and catalyze another leg up to retest the ATH at $4,868.
On the other hand, a breakdown of the $2,500 support level will invalidate Ethereum price’s bullish thesis. In such a case, ETH could crash 18% and revisit $2,044.
It is not just Bitcoin dominance and Ethereum price analysis forecasting a bullish outlook for ETH. There are multiple outlooks, all of which suggest the altcoin is primed for a comeback.
Ethereum Foundation Transfers 30,800 ETH For DeFi Activities, Alleviating Selling Pressure
After the community lashed out, the Ethereum Foundation took the feedback and transferred 30,800 ETH to Aave for Defi-related activities, including staking, lending, borrowing etc. This is a fundamentally bullish outlook as this reduces the selling pressure from the foundation actively selling its ETH to fund day-to-day operations.
EF Treasury has deployed:
– 10,000 ETH into Spark
– 10,000 ETH into Aave Prime
– 20,800 ETH into Aave Core
– 4,200 ETH into CompoundWe're grateful for the entire Ethereum security community that has worked diligently to make Ethereum DeFi secure and usable!
— Ethereum Foundation (@ethereumfndn) February 13, 2025
In other news, Goldman Sachs acquired $100 million worth of ETH ETFs split between BlackRock and Fidelity, upping its holdings to $600 million. While it is still unclear if Goldman Sachs is custodying customer funds or its holdings, this is a bullish development.
The post Ethereum Price Likely to Revisit $4,000 As Bitcoin Dominance Crashes 6% appeared first on CoinGape.
Post A Comment:
0 comments so far,add yours