Ethereum Price Prediction: ETH After 20 Percent Pump Now to USD 2,000?

Ethereum buyers are likely to be swept up in a wave of euphoria right now. Because in the last trading week, hardly any cryptocurrency recorded such a strong trend as ETH.

According to the latest figures from coinmarketcap.com, ETH/USD is up more than 20 percent. Among the top 10 currencies by market capitalization, only the Dogecoin shows an even stronger trend with a whopping 44 percent increase.

Only DOGE is trending better than ETH

However, the DOGE/USD course these days is mainly supported by the news that the head of Tesla, Elon Musk, has now officially bought Twitter. This is linked to speculation that the world’s richest man and best-known Dogecoin fan could introduce DOGE as an official payment method on Twitter in the future.

Ethereum, on the other hand, has not made a news pump, but this seems to be due to the sustained interest of investors in buying ETH. In addition, an important factor behind the rise is that the US stock markets have recovered somewhat, while at the same time the US dollar has lost some of its strength in recent months.

Ethereum benefits from slight dollar weakness

It’s striking how much the world’s reserve currency is affecting prices right now when buying shares and buying cryptocurrencies. Stocks and crypto prices have suffered since the dollar index exploded from below 90 to as high as 115 points since the beginning of the year. The current small weak phase, on the other hand, also helps the Ethereum course. Therefore ETH/USD has recovered the $1,500 mark and is trading at the highest levels since mid-September. But is this rally really sustainable?

Market rally another mark for Ethereum?

Already in August and September, buyers of the cryptocurrency had seen a sharp rise in prices and this even reached the $2,000 barrier again. Euphoria spread quickly that the bear market is now over.

In the end, however, the run-out was just a trap and in a quick correction back to $1,150, millions of dollars were liquidated in long positions on crypto exchanges. Is a similar situation emerging now, is it perhaps a conscious act by the bears who are still in control of the market?

Bullish sign: now ETH could rise quickly

Technical chart analysis here gives hope that the bear market may indeed be over. Due to the daily chart you can see that Ethereum currently bullishly left a symmetric triangle above the resistance zone and even a successful iteration of the former resistance as a new support zone has already been made.

This means that the necessary prerequisites for a certified eruption are in place. However, there is now a huge resistance before Ethereum’s course. So there is very strong trading volume in the $1,800 and $2,000 area. It is when ETH/USD also breaks these resistances that the chances of further bull strength will increase.

ETH buyers should not rejoice too soon and traders on crypto exchanges who want to trade ETH with leverage should still be cautious. In recent months, many chart patterns have failed to meet as the bears have repeatedly set traps. A breakout that was supposed to be false and immediate was successful as a result of a sharp correction.

Warning: Fed interest rates and inflation numbers are coming

In the current chart pattern, the bears still have a chance to push ETH/USD back into the symmetrical triangle and then push it below the support zone. Because the chart pattern remains valid until December 6, when the support and resistance lines meet. Until then, there are still important events that could cause the price to fall.

The US Federal Reserve will announce the new interest rate hikes for the main US interest rate as early as next Wednesday. In recent months, the interest rate decisions by the FED have been followed by major price shocks several times. If interest rates rise by 0.75 percent or more, this could have a negative impact on the markets.

#FedFAQ: What is the FOMC and when does it meet?

The Federal Open Market Committee (FOMC) is the monetary policy making body of the Federal Reserve System.

More information: https://t.co/ieKk7P4EgK #EconEdMonth pic.twitter.com/Mgv8R4O7rN

— Federal Reserve (@federalreserve) October 28, 2022

If, on the other hand, the increase is less than 0.75 percent and thus below analysts’ forecasts, the market would probably be euphoric and prices would rise. Because this is the first departure from the tight interest rate policy in the last few months, which drove the main interest rate from 0 percent to 3.25 percent in a short time.

A week later, on November 10, the new US inflation figures will be announced. These have also had a significant impact on the recent ETH course. Inflation in the US is currently above 8 percent, well below the target of 2 percent.

In recent times, forecasts of declining inflation have been repeatedly missed. If the analysts are disappointed again, the next correction for the altcoin could be pending. On the other hand, if significant inflation falls below 8 percent, this would be a very good sign for the markets and a very big pump can be expected for Ethereum.

Bullish price target at $2,400 but $300 also possible

This would boost investors’ hopes that the worst part of the economic crisis is over and that the last big drop that some analysts are predicting may not succeed and that there will be a soft landing on the financial markets .

Despite the good mood among Ethereum buyers, the next bull market is far from a foregone conclusion. Rarely have there been so many economic uncertainties before that could have such a huge impact on prices.

Ethereum is currently much closer to $2,000 than a pullback to $1,000 according to the chart pattern mentioned, but anything is still possible. Technical analysis shows that the bullish price target of the current move could give Ethereum a sharp price rise of 38 percent to $2,400. However, a correction below the support could drop ETH/USD below $300. That is similar to prices as they were before the last bull market in 2020/2021 and is likely to drive many investors into massive losses.

Buy alternative IMPT tokens

One of the most exciting new cryptocurrencies currently based on the Ethereum blockchain is the IMPT token. IMPT wants to create a new ecosystem for climate protection and investment on a blockchain basis.

Buyers of the IMPT token receive carbon credits and can trade unique NFTs. The first pre-sale phase of the IMTP Presale is currently ongoing. Here the token is already available for 0.018 dollars. But this phase will end soon. An early investment now could reap huge long-term returns if IMPT can reach its market potential.

On the other hand, if you wait too long, you might miss out on one of the best investment opportunities of your life. The bull market shows time and time again that new cryptocurrencies can bring in thousands of percent returns in a short time. Perhaps IMPT is one of them.