I am sure that a lot of people who are reading this hold Ethereum and would be pleased by how well Ethereum has recovered since sipping all the way to $2,5k. Despite the recent price activity, many pro traders are telling their audiences that they should proceed with caution and the next few weeks will be crucial to determining whether or not Ethereum will go on another massive surge.
ETH jumped 11% this week and peaked at $3.480. This is the highest level Ethereum has been at in 82 days. Naturally, FOMO kicks in and many will be investing in ETH as we speak because they don’t want to miss out on the bull run of the century but does the data suggest that this is likely to occur?
What has made some Institutional investors excited is that the fund’s flow report, published by CoinShares revealed that the products inflow has been at its highest level in 3 months. The net deposits last week were $193 million. This though doesn’t indicate that future price action will be as exciting or remain stable.
Where Is ETH Going Next?
What we all really want to know is, is ETH going to go up or down? While there are some traders who do believe that this price activity is an indication of another bull run, the general consensus is that we are unlikely to have another breakout and that the most likely thing that would occur now is a small retest.
From scowling 100’s of crypto traders’ opinions on the market’s activity this week, there appears to be a lot of fear that this won’t all be plain sailing from here and to be honest this should be expected after such an unbelievable week.
So, let’s delve into some price predictions. By the end of April, we believe that Ethereum will have found some consolidation at the $3k level. This would represent a healthy retest while at the same time an acknowledgement should be made that this would still be a nice recovery from its previous lows.
Therefore we clearly wouldn’t recommend buying ETH at this moment in time but we always suggest you don’t FOMO and make your best decisions when there is more clarity in the markets. When the bottom is nearing or could be reached this is when a good time would be to pile in and invest in some crypto.
