The Ethereum price has staged a strong recovery above $2,000 as the rest of the crypto universe recovers. The ETH has jumped to $2,130, which is about 25% above the lowest level last week. That has pushed its market capitalization to more than $244 billion.
Ethereum boosted by Bitcoin
Ethereum price has jumped recently, helped by the overall resilience of Bitcoin. For one, after dropping below $30,000 last week, Bitcoin has also risen to more than $34,000. This sends a signal that Bitcoin has found a substantial floor at the $30,000 level. In most cases, altcoins like Ethereum and Cardano tend to follow Bitcoin. This is also the reason why Jim Cramer has bought back Ethereum.
Bitcoin has remained above $34,000 after a well-known Mexican billionaire with close ties to the president supported the currency. In a tweet, Ricardo Salinas, the country’s second-richest man urged people to buy Bitcoin and not sell. He said that his bank was seeking authorization to become the first one to accept Bitcoin.
Ether is also rising after the relatively strong inflows in the Decentralized Finance (DeFi) industry. In the past few days, the total value locked in the industry has jumped to more than $53 billion after falling to $46 billion last week.
Some of the biggest DeFi projects like Aave, Curve Finance, and Maker have seen their total value locked increase substantially recently. This is notable since most of them are built using Ethereum’s infrastructure. So, what next for Ethereum price?
Ethereum price prediction
The daily chart shows that the Ethereum price has risen in the past four consecutive days as interest in the coin rebounds. By doing so, the coin has managed to move above the 200-day moving average. The coin has also moved above the double-bottom level at $1,750.
It is also approaching the 50% Fibonacci retracement level at $2,326. The Relative Strength Index (RSI) has moved from the oversold level to the present 40.
Therefore, in my view, I don’t think that this upward momentum is strong enough for the coin. As such, people interested in the coin should wait for a while before going back in. The reversal signal will emerge when the coin manages to move above $2,500, which is along the 50-day moving average. As such, I can’t rule out a situation where the coin falls back to the double-bottom level at $1,750.