Ethereum Price Prediction: Are Meme Coins DOGE, SHIB Driving Altcoins Rally As ETH Stalls?

Business

How Far Will Meme Coins DOGE, SHIB, PEPE Drive Altcoins Rally As ETH Stalls? – Crypto News

Published

1 year ago

March 4, 2024

Dripp

The total crypto market capitalization is closing in on the $2.5 trillion threshold underpinned by a Bitcoin price surge above $65,000 on Monday. Although bullish, the Ethereum price prediction reveals a struggling second-largest cryptocurrency, which has since last week oscillated between support at $3,400 and resistance at $3,550.

In the meantime, select meme coins including Shiba Inu (SHIB), Dogecoin (DOGE), and PEPE are charging forward, shaping the altcoin landscape.

Dogecoin secured its position in the top ten, boasting a 12.5% in its cap to $22.8 billion. The ninth-largest crypto’s $5 billion 24-hour trading volume underlines growing interest among traders and investors.

Shiba Inu and Pepe Coin’s last week’s rally was unstoppable over the weekend, with the former peaking at $0.00002263, and the latter achieving a new all-time high of $0.000007583, according to CoinMarketCap market data.

Ethereum Price Prediction: Is There A Way Out For ETH Bulls?

Ethereum performed exceptionally well in January and February buoyed by growing optimism for the spot ETF. Investors turned to Ethereum following the approval of Bitcoin ETFs, with many believing that it will not be long until the Securities and Exchange Commission (SEC) considers a spot ETH ETF.

In addition to the ETF, the upcoming Dencun upgrade, scheduled for March 13 could be a major market mover for Ethereum price. With this protocol upgrade, Ethereum will tackle the issue of scalability by increasing the block size from 12.5 MB to 25 MB.

Layer 2 scaling networks like Arbitrum and Polygon will benefit the most from the Dencun upgrade promising cheaper and faster transactions.

In the previous week, Ethereum moved in tandem with Bitcoin as it tested resistance in the range between $3,500 and $3,600. At the time, BTC launched above $60,000 and tested $64,000 before settling for sideways oscillation above short-term support at $62,000.

While an aggressive Bitcoin ascended above $65,000 on Monday, Ethereum struggled to clear resistance at $3,500 with the area at $3,550 emerging as a new sell-wall.

Trading at $3,490 during US business hours on Monday, Ethereum needs to close above $3,500 to convince investors that the upturned is intact. Otherwise, a longer sideways trend may start to form to allow for fresh re-accumulation to boost the next leg up targeting highs above $4,000 and the record high around $4,890.

Ethereum price prediction chart | Tradingview

The Relative Strength Index (RSI) reinforces the bullish theory. Although slightly overbought at 81, the RSI backs the current uptrend, suggesting that ETH’s sideways doldrums may not last long.

According to the Money Flow Index (MFI) the inflow and outflow of money into Ethereum are equal and canceling out, which explains the current sideways trading.

Traders need a confirmation of movement above $3,500 to go all-in on ETH and bet on the price rallying to close the distance to $4,000. Other key levels to watch out for are the hurdles at $3,600 and $3,800. On the downside, support levels stand at $3,400 and $3,200, respectively.