• Is this the last resistance before Ethereum reaches $5k? Experts predict a positive fourth quarter

  • The bulls have taken control of the cryptocurrency market, with Bitcoin and Ethereum gaining ground across the board. A year ago, the price action leading up to the end of the year propelled the market to new highs. The expectations are similar, but experts have yet to reach an agreement.

    In the 24-hour chart, Ethereum (ETH) is currently trading at $3,466 with a 2.5 percent profit.

    According to Senior Commodity Strategist Mike McGlone’s, the “biggest surprise” would be if Bitcoin and Ethereum prices did not rise.

    The two largest cryptocurrencies by market capitalization have faced short-term bearish challenges but have long-term bullish fundamentals. One of the most prominent examples is China’s crypto ban.

    McGlone anticipates that $40,000 will become the new critical support level for Bitcoin in the coming months. In the event of a downside risk, Ethereum could move into the $2,000 to $3,000 support zone.

    Both cryptocurrencies have been raising their price floors after a period of intense selling pressure in the market in May, June, and July.

    Ethereum is seeing significant price gains in the non-fungible token (NFT), fintech, stablecoins, and decentralized finance sectors (DeFi). As a result, the analyst believes ETH’s price is still in its early stages of discovery before beginning to appreciate.

    The addition of EIP-1559 to the Ethereum chart has added a new bullish factor. McGlone claims that:

    Demand and adoption are increasing, but our graph shows a significant difference from a year ago: falling supply. At the start of 4Q20, the 12-month rate of change in Mosaic’s measure of Ethereum supply was closer to 5%. Because of a recent upgrade, it is now on track to fall below 2%.

    Ethereum is edging out Bitcoin in terms of market share.

    Because of its use cases, Ethereum has been able to attract major players and capture a significant market share. As can be seen in the chart below, the second-largest cryptocurrency by market capitalization is establishing itself as a leader.

    According to the analyst, the digitalization of money and finance will continue to drive demand for Ethereum. The growth in the DeFi sector has been exponential, with the total value locked of these assets reaching $100 billion, up from $20 billion in 2020.

    On Oct. 4, the market cap of the No. 2 crypto was around 20% of the total, compared to closer to 10% at the start of 2021. Bitcoin’s dominance has dwindled from 70 percent to around 40 percent. According to Mosaic and Coin Dance data, Ethereum is at the top of the food chain, indicating rising crypto values and its status as the go-to platform for smart contracts, NFTs, and decentralized finance.

    In this regard, the report claims that investors who do not have a position in the crypto market are making a mistake akin to missing out on the early days of the internet.

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