Analyst Projects Ethereum Could Hit $2,000 Amid Market Consolidation

FxPro senior analyst Alex Kuptsikevicha projects that ethereum price could fall further to $2,000 as the altcoin is down more than 8% on a weekly basis.

The cryptocurrency market is experiencing a period of moderate volatility, with the total market capitalization hovering around $1.6 trillion for the third day in a row. At the same time, stock indices in the stock market have also fallen significantly in the past 24 hours.

However, the impact on cryptocurrency investors has been minimal. Kuptsikevich believes that the decline in share value is seen more as a result of individual corporate stories than as an indication of a global change in market sentiment.

bitcoin is benefiting from this consolidation phase, with market share once again exceeding 50%. On the other hand, ethereum is at the lower end of the consolidation range, which it has been in for most of December. Kuptsikevich predicts that ethereum is showing signs of a possible drop to the $2,100 area, a level that marked the upper end of its November consolidation phase.

Kuptsikevich suggests that a further decline towards the $2,000 mark is possible, citing the inherent volatility of the cryptocurrency market. This potential drop could mirror a similar pullback in bitcoin to the $37,500 level.

The SEC has also delayed its decision on BlackRock's application for an ethereum spot ETF until March 10. While some experts remain optimistic about the ETF's approval in May, with a probability of 50 to 70%, others are wary of regulatory resistance.

The introduction of spot bitcoin ETFs in the US has broadened the appeal of cryptocurrencies to a broader audience. According to Coinbase's institutional head, this marks a potential shift towards widespread adoption of digital currencies.

However, the inflow of new capital into new cryptocurrencies is expected to be a gradual process, developing over months or even years.

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