Ethereum struggles to surpass the $2,000 threshold despite numerous attempts.
This resistance mirrors the $425 barrier Ethereum faced in 2018-2019.
A strengthening U.S. dollar has dampened Ethereum’s appeal.
Ethereum‘s ascent to the revered $2,000 mark has been a watchword for many in the financial sector. Yet, every time it seems on the verge of breaking past this psychological threshold, it’s repelled back with unnerving consistency.
If you’re pondering the forces at play that prevent Ethereum from making that crucial leap, you’re not alone. Let’s delve into the core reasons tethering this cryptocurrency giant below its full potential.
A Reflection of the Past: Bearish Cycle Patterns
It’s eerily reminiscent, of how Ethereum grapples with the $2,000 barricade today. Cast your mind back to the 2018-2019 period when the crypto’s upward trajectory halted near the $425 mark. Like a recurring nightmare, Ethereum finds itself in a seemingly parallel situation.
Eying a bullish surge past its 0.236 Fibonacci retracement, Ethereum, in both instances, was met with strong resistance – previously at $425 and now, unsurprisingly, around the $2,000 range. A barrier solidified further by traders’ anticipation and reactions.
Few can underestimate the influence of the world’s reserve currency, the U.S. dollar, on global assets. Ethereum is no exception. With a strengthening U.S. dollar, the appetite for Ethereum has undeniably waned.
The evident negative correlation between major cryptocurrencies and the dollar has long been established. In 2023, this correlation with the dollar index, specifically for Ethereum, has been palpably negative.
Yet, the dollar isn’t the sole heavyweight influencing Ethereum’s price trajectory. Bitcoin, often seen as the crypto market’s guiding star, has overshadowed Ethereum throughout 2023.
With the widespread chatter and excitement surrounding potential spot Bitcoin ETFs, Ethereum has paled in comparison. To paint a picture, the ETH/BTC pair, a commonly referenced metric, has dwindled by 20% this year.
Moreover, if we’re delving into numbers, Ethereum-focused investment funds have seen a net loss of $114 million in capital in 2023. In stark contrast, Bitcoin-centric funds experienced an influx of $168 million during the same timeframe.
This resistance mirrors the $425 barrier Ethereum faced in 2018-2019.
A strengthening U.S. dollar has dampened Ethereum’s appeal.
Ethereum‘s ascent to the revered $2,000 mark has been a watchword for many in the financial sector. Yet, every time it seems on the verge of breaking past this psychological threshold, it’s repelled back with unnerving consistency.
If you’re pondering the forces at play that prevent Ethereum from making that crucial leap, you’re not alone. Let’s delve into the core reasons tethering this cryptocurrency giant below its full potential.
A Reflection of the Past: Bearish Cycle Patterns
It’s eerily reminiscent, of how Ethereum grapples with the $2,000 barricade today. Cast your mind back to the 2018-2019 period when the crypto’s upward trajectory halted near the $425 mark. Like a recurring nightmare, Ethereum finds itself in a seemingly parallel situation.
Eying a bullish surge past its 0.236 Fibonacci retracement, Ethereum, in both instances, was met with strong resistance – previously at $425 and now, unsurprisingly, around the $2,000 range. A barrier solidified further by traders’ anticipation and reactions.
Few can underestimate the influence of the world’s reserve currency, the U.S. dollar, on global assets. Ethereum is no exception. With a strengthening U.S. dollar, the appetite for Ethereum has undeniably waned.
The evident negative correlation between major cryptocurrencies and the dollar has long been established. In 2023, this correlation with the dollar index, specifically for Ethereum, has been palpably negative.
Yet, the dollar isn’t the sole heavyweight influencing Ethereum’s price trajectory. Bitcoin, often seen as the crypto market’s guiding star, has overshadowed Ethereum throughout 2023.
With the widespread chatter and excitement surrounding potential spot Bitcoin ETFs, Ethereum has paled in comparison. To paint a picture, the ETH/BTC pair, a commonly referenced metric, has dwindled by 20% this year.
Moreover, if we’re delving into numbers, Ethereum-focused investment funds have seen a net loss of $114 million in capital in 2023. In stark contrast, Bitcoin-centric funds experienced an influx of $168 million during the same timeframe.
