After Bitcoin (BTC) hit a new all-time high (ATH), Ethereum (ETH) rebounded above $3,800 before plunging more than 10% in price. The second-largest cryptocurrency recovered from its downturn and momentarily reached $3,900 for the first time in more than two years.
Ethereum recovers and rises to $3,900.
Bitcoin reached a major milestone on Thursday after breaking above $69,000 and hitting a new all-time high (ATH). Before the euphoria was over, the price of the flagship cryptocurrency began to fall to $60,000. Since then, the price of BTC recovered and hovered between the $66,000-$67,000 price range.
Buoyed by optimistic sentiments, Ethereum rebounded above $3,800 before experiencing a significant price decline. The ‘king of altcoins’ lost momentum and traded around 12% of its price as low as $3,360, according to CoinMarketCap data.
After the decline ended, ETH started to recover along with Bitcoin. As NewsBTC reported, the key resistance level to clear during this recovery was $3,600. Ethereum broke above this support level and the price remained above the $3,800 range for the last four hours.
Just entered: $3,900 $ETH
— Watcher.Guru (@WatcherGuru) March 6, 2024
Ethereum has reached the $3,800 support level twice in the last 24 hours. This price range has not been seen since January 2022, and the restored bullish momentum has pushed the token price to higher milestones.
Ethereum hit $3,900 for the first time since December 2021. The largest altcoin briefly surged to $3,901 before falling to the $3,850 price range.
As of this writing, ETH is trading at $3,834, down 1.6% in the last hour and up 2% from 24 hours ago. Likewise, tokens display green numbers on longer time frames.
ETH price performance in the 4-hour chart. Source: ETHUSDT on TradingView.com
Ethereum’s price performance has surged nearly 16% in the past week, 65% in the past month, and a whopping 145% in one year.
ETH’s market capitalization increased 1.55% over the past day to $459.7 million. Daily trading volume increased 58% in the last 24 hours with market activity of $52.16 billion.
What’s next for ETH price?
Many analysts predicted that ETH’s bull run is far from over. Altcoin analyst Sherpa predicted that Ethereum could reach $4,000 if it breaks the $3,000 price barrier.
Ethereum’s rally appears to have been fueled not only by Bitcoin’s momentum, but also by overall market dynamics. The Dencun upgrade date is approaching, and this update is expected to bring several technical improvements to the Ethereum infrastructure.
Moreover, as the possibility of an Ethereum-based spot exchange-traded fund (ETF) receiving approval from the U.S. Securities and Exchange Commission (SEC) was raised in May, expectations for Ethereum and the blockchain ecosystem are rising.
Pseudonymous trader Ash Crypto suggested to Telegram subscribers that the price correction experienced after Bitcoin’s new ATH was not a “cause for panic.”
Message from Ash Crypto to his Telegram Subscribers. Source: Ash Crypto on Telegram
Related Read: Ethereum Price Follows Bitcoin Surge. Why $4,000 is only a matter of time
The trader said a “late long flush to reduce all leverage” was expected and believes the imminent stabilization of BTC prices will facilitate operations for ETH and all altcoins. Likewise he presentation After ETH price reached $3,900, it was suggested that $4,200 would be the next support level for Ethereum in the ‘upcoming alt season’.
$ETH Just hit a new high 🔥
$4,200 coming soon!
Get ready for alt season pic.twitter.com/ZLirlerVDJ
— Ash Crypto (@Ashcryptoreal) March 6, 2024
Cover image by Unsplash, chart by Tradingview
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