After hitting $1,900, its highest level in just under eight months on Wednesday, Ether (ETH) saw a slight pullback and fell all the way to $1,800.
On the day, the second most valuable cryptocurrency in the world by market capitalization is down just over 2%, according to TradingView. Ether powers the Ethereum blockchain which is the most widely used blockchain in the world and is based on smart contracts.
But the short-term technical outlook for the cryptocurrency continues to look good. ETH recently found a decent support in its 21 day moving averageand all of its other major moving averages are up in consecutive order.
The fact that ETH is currently finding decent support in the $1800s boosted optimism about the likelihood of an extension of short-term gains towards August 2022 highs just above $2,000.
Additionally, ETH’s 14-day Relative Strength Index (RSI) is not yet in overbought territory, suggesting reduced risk of short-term profit-taking.
Some analysts and traders have expressed concern that, in the wake of a series of major Ethereum blockchain updates on April 12, ETH may come under short-term selling pressure.
The so-called “Shapella” update will allow, among other things, the withdrawal of Ether tokens in play.
Most analysts see this development as a long-term positive for the network – it is assumed that more flexible staking withdrawals will eventually motivate many more ETH owners to stake their tokens.
But some think ETH could suffer a reaction of “selling the news” and warned that there could be near-term price pressures as investors sell ETH tokens that have been locked in long-term staking contracts.
ETH staking has been active since late 2020 on the Ethereum beacon chain, before the Ethereum blockchain moved to proof-of-stake last September.
Price Prediction – Can ETH Hit an All-Time High in 2023?
Even if ETH were to see a drop after the Shapella update, many expect the drop to be short-lived.
ETH also saw a strong rebound from its 200-day moving average last month.which is a medium-term bullish indicator.
The “golden cross” (when the 50-day moving average crosses the 200-day moving average) in early February is another good sign for the medium-term technical outlook for ETH.
In addition, macroeconomic headwinds, such as expectations that the Fed will cut interest rates later in the year to avert a banking crisis and recession, continue to blow.provide broad support for cryptocurrency markets.
While one can certainly say that the outlook for ETH is positive in the medium to long term, betting on the cryptocurrency returning to all-time highs this year is another matter.
For Ether to reach new all-time highs this year, it would need to gain 160% from its current levels.
But this is the cryptocurrency market. ETH is already up more than 100% from its low of last yearwhich was around $800.
And between November 2020 and April 2021, Ether gained 600%.
A rally of 160% this year should therefore by no means be ruled out.
Alternatives to Ethereum to consider
Although the outlook for ETH is strong, investors should still be on the lookout for diversification in their cryptocurrency holdings.
A high-risk, high-reward investment strategy that some investors might consider is to get involved in cryptocurrency presales.
Investors buy the tokens of the crypto projects being launched to help fund their development.
These tokens are almost always sold very cheaply and there is a long tradition of pre-sales which have allowed early stage investors to make huge exponential gains.
Many of these projects are backed by fantastic teams and have a great vision of creating a game-changing crypto app or platform.
If an investor can identify such projects, the risk/reward ratio of his presale investment is very good.
The Cryptonews team spends a lot of time combing through pre-sale plans to help investors.
Here is a list of 15 of what our team considers to be the best cryptocurrency presales of 2023.
Disclaimer: The Industry Talk section presents the views of cryptocurrency industry players and is not part of the editorial content of Cryptonews.com.