Ethereum “must rebound” because ETH bulls pin their hopes for a $5,000 rebound on key support channels
Ethereum’s native token Ether (Ethereum), as its price has fallen into a trading zone attracting buyers in the near future, there may be another strong rebound in the next few trading days.
The uptrend line has been triggered ETH price rebounds Since the beginning of October, it is part of a wider range of ascending channels.
Therefore, despite the correction of the upper trend line of the channel, the path of least resistance for Ethereum has been upward, and its quarter-to-date return is currently over 38%.
Recently, an uptrend line helped limit subsequent selling Ether rises to a record high More than $4,870. This prompted analysts to expect prices to rebound strongly in the future. Forexn1 released a “swing long” setting on TradingView, calling for a bull market to rise to $5,000.
MacroCRG, an independent market analyst based on Twitter, Said Ether “must rebound” because it managed to use the rising trend line as support after the latest price correction.
At the same time, another analyst, Pentoshi, also expected a rebound, but discussed the prospect of a correction below the upward trend line.In a tweet on November 12, he statement:
“I hope to eliminate substitutes by 20-30%. The usual bull market is down. Just because I want it doesn’t mean it will happen. Greed and fear, please.”
As shown in the chart below, Pentoshi’s downside target is close to $4,000 in the context of continued price corrections.
Macro fundamentals support ETH bulls
Ethereum’s ability to limit price corrections, and the ability to form new highs on top of it, seems to be not just the factors behind technical factors.
Chris Weston, head of research at Pepperstone Financial Pty, said that concerns about high inflation are what drives the demand for potential hedging assets in the entire crypto market, resulting in a price increase of more than 500% in Ether and more than 130% in Bitcoin in 2021.
For investors, “cryptocurrency is a place to make money quickly,” Weston Said In a note.
In addition, Mike McGlone, senior commodity strategist at Bloomberg Index, last week Said He estimated the price of Ether to be $5,000, and said that “without the addition of Bitcoin and Ethereum, some gold and bond portfolios seem to be increasingly naked.”
three #encryption The Musketeers have driven a market value of $3 trillion—representing a better way of trading, a strengthened ecosystem, and a long-standing asset class, #Cryptodollar It is the most important part of the digital currency revolution and the third leg of the encryption stool. pic.twitter.com/qhEOXttPW8
— Mike McGlone (@mikemcglone11) November 9, 2021
The analyst listed the decline in supply as the main bullish support for Ethereum.
That is, the software upgrade of Ethereum in August, which is called London hard fork, Implemented a code change and started to burn part of the gas fee paid to miners through ETH, effectively reducing the supply.
According to data provided by Ultrasound.money, the upgrade has resulted in the removal of more than 860,500 ETH since its implementation-now worth more than $3.2 billion. At the current rate, the Ethereum network is expected to burn 5.3 million ETH and issue 5.4 million ETH each year.
McGlone pointed out that the decline in the supply rate will allow Ether to continue to be bullish despite rising demand:
“As we have seen, simply sticking to it is a more likely outcome. Ethereum has joined Bitcoin, and its supply trajectory has fallen due to the code. The first cryptocurrency is a store of value, and the second is a DeFi building block.”
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