Ethereum, the second most important and greatest cryptocurrency after BTC, has obtained decent gains in the first few days of this week. The ETH was consolidating on Thursday near the $1250 mark with a posting of significant growth.
In fact, ETH is still up about 4.0% this week, and investors can profit from their assets. The gain of ETH is despite having pulled back close to 2% from Wednesday’s highs in the $1,270 region. This is because, on Wednesday, it produced a clean upside break of its 21 and 50-Day Moving Averages.
Short-term price projections have shifted more bullishly in the aftermath of the recent uptrend, which appears to have been more technically motivated in the absence of any noteworthy Ethereum-specific triggers.
The US job market indicators (so far) have been positive, but macro headwinds might pose a challenge for the bulls given that Fed members have made hawkish comments in speeches and through the release of meeting minutes on Wednesday.
What Is The Next Target Of ETH Prices?
Therefore, the Fed’s tightening bets will cause ETH to revert to where it was at the beginning of the week, around $1,200. However, given the solid technical picture, revisiting these levels may spark significant buying activity.
ETH bulls are aiming for an eventual challenge of the December highs in the $1,340 range and a probable test of the 200DMA around $1,390 after breaking out of a medium-term downtrend earlier this week.
ETH may be able to advance above current levels, but that is another matter. The cryptocurrency is still trapped inside a bearish trend channel that has been active since July 2022.
A significantly higher break may not be on the horizon in the upcoming weeks or months, according to persistent challenges to the larger crypto industry caused by a still highly hawkish Fed and the deteriorating US economy.
The Next Possible Prices Of Ethereum In 2023
Macro headwinds are highly predicted to weaken later this year. Many analysts predict that US inflation will keep accelerating its decline back toward the Fed’s 2.0% target. And it should give the US central bank freedom to start lowering interest rates to promote growth, which is also expected to deteriorate significantly.
This may cause a widespread pumping of risky assets. The second-largest cryptocurrency in the world by market capitalisation, ETH, will hold onto the optimism that it may return to its pre-“merge” highs from last August, which were about $2000.