Altcoins
How far will Meme Coins DOGE, SHIB and PEPE drive Altcoins rally as ETH stagnates?
Total crypto market cap nears $2.5 trillion threshold supported by a Bitcoin price exceed $65,000 on Monday. Although optimistic, the Ethereum Price Prediction reveals a struggling second-largest cryptocurrency, which has been oscillating between support at $3,400 and resistance at $3,550 for the past week.
In the meantime, select meme pieces including Shiba Inu (SHIB), Dogecoin (DOGE) and PEPE are moving forward, shaping the altcoin landscape.
Dogecoin consolidated its position in the top ten, with a 12.5% increase in its cap to $22.8 billion. The ninth-largest crypto’s 24-hour trading volume of $5 billion highlights growing interest from traders and investors.
Shiba Inu and Pepe Coin’s rally last week was unstoppable over the weekend, with the former peaking at $0.00002263 and the latter hitting a new all-time high of $0.000007583, according to CoinMarketCap market data.
Recommended: SHIB, BONK, FLOKI Price Analysis as Memecoin Rally Leads Crypto Market Cap to $2.5 Trillion
Ethereum Price Prediction: Is There a Way Out for ETH Bulls?
Ethereum performed exceptionally well in January and February, supported by growing optimism for the spot ETF. Investors have turned to Ethereum following the approval of Bitcoin ETFs, and many believe it won’t be long before the Securities and Exchange Commission (SEC) considers a place. ETH ETF.
In addition to the ETF, the next Dencun upgrade, scheduled for March 13, could be a major market mover for the price of Ethereum. With this protocol upgrade, Ethereum will address the scalability issue by increasing the block size from 12.5MB to 25MB.
Layer 2 scaling networks like Arbitrum and Polygon will benefit the most from Dencun’s upgrade, promising cheaper and faster transactions.
The previous week, Ethereum moved in tandem with Bitcoin as it tested resistance between $3,500 and $3,600. At the time, BTC launched above $60,000 and tested $64,000 before settling for a sideways swing above short-term support at $62,000.
While aggressive Bitcoin climbed above $65,000 on Monday, Ethereum struggled to break through resistance at $3,500, with the $3,550 area appearing as a new selling wall.
Trading at $3,490 during US business hours on Monday, Ethereum needs to close above $3,500 to convince investors that the recovery is intact. Otherwise, a longer sideways trend could begin to form to allow further accumulation to spur the next leg targeting highs above $4,000 and a record high around $4,890.
Ethereum Price Prediction Chart | Commercial view
The Relative Strength Index (RSI) reinforces the bullish theory. Although slightly overbought at 81, the RSI supports the current uptrend, suggesting that ETH’s sideways slump may not last long.
According to the Money Flow Index (MFI), money inflows and outflows to Ethereum are equal and cancel each other out, which explains the current sideways trading.
Traders need confirmation of a move above $3,500 to go all-in on ETH and bet on the price rising to close the distance to $4,000. Other key levels to watch are the hurdles at $3,600 and $3,800. On the other hand, support levels stand at $3,400 and $3,200, respectively.
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