After bitcoin (btc) recorded a new all-time high (ATH), ethereum (eth) rose above $3,800 before the price fell more than 10%. The second-largest cryptocurrency recovered from the drop and momentarily hit $3,900 for the first time in more than two years.
ethereum recovers and rises to $3,900
On Thursday, bitcoin reached a crucial milestone after surpassing $69,000 and recording a new all-time high (ATH). Before the euphoria ended, the price of the flagship cryptocurrency began to fall, trading as low as $60,000. Since then, the price of btc has recovered to between $66,000 and $67,000.
Buoyed by bullish sentiment, ethereum rose above $3,800 before suffering a considerable price drop. The 'king of altcoins' lost momentum and destroyed around 12% of its price to trade as low as $3,360, according to data from CoinMarketCap.
Once the drop was over, eth began to show a recovery along with bitcoin. As NewsBTC reported, a crucial resistance level to overcome during this rally was $3,600. ethereum broke through this support level and has maintained its price above the $3,800 range for the past 4 hours.
— Watcher.Guru (@WatcherGuru) March 6, 2024
ethereum hit the $3,800 support level twice in the last 24 hours. This price range had not been seen since January 2022, and the regained bullish momentum propelled the token price to a higher milestone.
ethereum hit $3,900 for the first time since December 2021. The largest altcoin briefly spiked to $3,901 before falling to the $3,850 price range.
At the time of writing, eth is trading at $3,834, representing a 1.6% price drop in the past hour and a 2% increase from 24 hours ago. Similarly, the token shows green numbers on longer time periods.
<img decoding="async" class="alignnone size-large wp-image-596600 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/03/Ethereum-ETH-reaches-3900-for-the-first-time-in-two.png" alt="eth, ETHUSDT, ethereum” width=”860″ height=”435″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/03/ETHUSDT_2024-03-06_08-10-47.png?w=1023 1023w, https://www.newsbtc.com/wp-content/uploads/2024/03/ETHUSDT_2024-03-06_08-10-47.png?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/03/ETHUSDT_2024-03-06_08-10-47.png?w=768 768w, https://technicalterrence.com/wp-content/uploads/2024/03/Ethereum-ETH-reaches-3900-for-the-first-time-in-two.png 860w, https://www.newsbtc.com/wp-content/uploads/2024/03/ETHUSDT_2024-03-06_08-10-47.png?w=750 750w” sizes=”(max-width: 860px) 100vw, 860px” loading=”lazy” data-recalc-dims=”1″/>
eth price performance in the 4-hour chart. Source: ETHUSDT on TradingView.com
ethereum price performance increased by almost 16% last week, 65% in the last month, and an impressive 145% in one year.
eth market capitalization increased by 1.55% to $459.7 million in the last day. Its daily trading volume has increased by 58%, with $52.16 billion in market activity in the previous 24 hours.
What's next for eth price?
Many analysts have predicted that the eth rally is far from over. Altcoin analyst Sherpa predicted that ethereum could reach $4,000 when it breaks the $3,000 price barrier.
ethereum's rally appears to be driven not only by bitcoin's momentum but also by overall market dynamics. The Dencun upgrade date is approaching and this upgrade is expected to bring several technical improvements to the ethereum infrastructure.
Additionally, the possibility of Ether-based spot exchange-traded funds (ETFs) being approved by the US Securities and Exchange Commission (SEC) in May has raised expectations for Ether and the blockchain ecosystem. .
Pseudonymous trader Ash crypto suggested to his Telegram subscribers that the price correction experienced after bitcoin's new ATH was not a “reason to panic.”
<img loading="lazy" decoding="async" class="alignnone size-large wp-image-596599 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/03/Ethereum-ETH-reaches-3900-for-the-first-time-in-two.jpg" alt="peak season, eth, bitcoin, altcoins” width=”860″ height=”276″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/03/IMG_2547.jpg?w=1007 1007w, https://www.newsbtc.com/wp-content/uploads/2024/03/IMG_2547.jpg?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/03/IMG_2547.jpg?w=768 768w, https://technicalterrence.com/wp-content/uploads/2024/03/Ethereum-ETH-reaches-3900-for-the-first-time-in-two.jpg 860w, https://www.newsbtc.com/wp-content/uploads/2024/03/IMG_2547.jpg?w=750 750w” sizes=”(max-width: 860px) 100vw, 860px” data-recalc-dims=”1″/>
Message from Ash crypto to his Telegram Subscribers. Source: Ash crypto on Telegram
Related Reading: ethereum Price Follows bitcoin Rise, Why $4,000 Is Just a Matter of Time
The trader believes that the “long and late flow to reduce all leverage” was expected and that an upcoming stabilization in the price of btc will boost the run of eth and all altcoins. Likewise, the Announced 'incoming alt season' after eth price hit $3,900 and suggested ethereum's next support level will be $4,200.
$4,200 COMING NEXT!
PREPARE FOR THE HIGH SEASON pic.twitter.com/ZLirlerVDJ
– Ash crypto (@Ashcryptoreal) March 6, 2024
Cover image from Unsplash, chart from Tradingview
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