Source: Pexels
Ether (ETH), the second most valuable cryptocurrency by market capitalization that powers the smart-contract-enabled Ethereum blockchain, was last up close to 5% on Thursday and just hit fresh highs for the year in the mid-$2,300s.
Ethereum remains the dominant blockchain used by Decentralized Finance (DeFi), Non-Fungible Token (NFT) and broader web3 industries, accounting for around 70% of the crypto industry’s $107 billion in total value locked (TVL) as per DeFi Llama, which refers to the total value of all crypto locked in smart contracts.
Ether has been pumping in recent weeks amid a broader resurgence in risk appetite across the crypto market that saw Bitcoin this week surge to fresh yearly highs above $44,000.
That pump has come amid optimism about expected near-term spot Bitcoin ETF approvals and about a potentially imminent dovish monetary policy pivot from the US Federal Reserve, which could lead to a more favorable liquidity environment.
But with major asset managers like BlackRock also moving to create spot Ethereum ETFs, with the Ether supply having recent switched back to deflationary thanks to improving on chain activity and with Ether having substantially lagged Bitcoin’s rally this year (ETH is up 96% year-to-date versus BTC’s 164% gain), the case for strong near-term Ether price gains strong.
Recent technical developments also support the case for further upside, with near-term price predictions likely to remain bullish as a result.
Price Prediction – Can Ether (ETH) Reach $3,500 By December 31st?
ETH recently broke above and then found strong support at key long-term resistance in the $2,150 area.
Chart analysis shows that there aren’t many key resistance levels now going all the way until 2022’s highs in the $3,500 area, meaning quick potential upside of around 50% in the near future.
Whether ETH could cover such distance to the upside prior to the 31st of December (i.e. in just over three weeks) seems unlikely but isn’t be unheard of in ETH’s price history.
In late July 2020, ETH rallied 57% in two week, followed by a more than 80% in the final week of 2020 and into the first week of 2021.
The last week of April into the first week of May 2021 then saw a more than 70% gain for ETH.
With technicals and fundamentals lining up at a typically strong time for the crypto market (i.e. a strong possibility of a santa rally), investors shouldn’t bet against ETH hitting $3,500 this year.
Crypto Alternatives to Consider
While ETH offers strong upside potential for the weeks ahead, those looking to diversify into an alternative high-risk, high-reward investment strategy should consider getting involved in crypto presales.
This is where investors buy the tokens of upstart crypto projects to help fund their development.
These tokens are nearly always sold cheaply, and there is a long history of presales delivering huge exponential gains to early investors.
Many of these projects have fantastic teams behind them and a great vision to deliver a revolutionary crypto application/platform.
If an investor can identify such projects, the risk/reward of their presale investment is very good.
The team at Cryptonews spends a lot of time combing through presale projects to help investors out.
Here is a list of 15 of what the project deems as the best crypto presales of 2023.
Disclosure: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. By using this website, you agree to our terms and conditions. We may utilise affiliate links within our content, and receive commission.
The post Ethereum Price Prediction as ETH Rises Above $2,300 – Can ETH Reach $3,500 by December 31? appeared first on Cryptonews.
