Ethereum Price Prediction: Bloomberg’s Global Crypto Outlook to Support ETH

According to the report released by Bloomberg Intelligence analyst Mike McGlone, deflationary forces will take crypto assets to new highs. McGlone’s Bloomberg Global Cryptocurrency Outlook report suggests a bullish case for BTC and ETH.

According to him, the increased demand in the face of the declining supply has positioned ETH at the epicentre of the digitization of finance and money. This outlook for Ethereum by Bloomberg Intelligence put upward pressure on ETH/USD over the weekend.

The main reason behind the upward trend of ETH/USD was the outline of Ethereum provided by its co-founder, Vitalik Buterin. He outlined an Endgame roadmap for ETH 2.0, saying that the long-awaited transition of the platform was closer to completion. Buterin’s report, titled “Endgame,” talked about how the world’s largest smart contract platform could improve scale while meeting high standards in terms of trustlessness and censorship resistance.

The Ethereum co-founder said that there was a strong possibility that block production would become centralized, despite the network’s approach to scalability. He said that the advantage of the Ethereum rollup-centric roadmap was that it was accessible to all futures. The roadmap suggested that ETH 2.0 was near, and this news has had a positive effect on ETH/USD.

The famous investor, founder, CEO and CIO of Ark Investment Management, Cathie Wood, has expressed her views, saying that cryptocurrencies, like Bitcoin and Ethereum, are undervalued, given their potential. She believes that cryptocurrencies with blockchain technologies, like DeFi and NFTs, could be even more underestimated at their current levels. These comments by the well-known Cathie Wood further boosted the prices of ETH/USD.

Of course, the declining price of the US dollar also added to the bullish momentum of ETH/USD. The greenback is weak because of the increased inflationary pressures. The US CPI report suggested an annual rise of 6.8%, which was the fastest rate in over 40 years, and this news put huge selling pressure on the USD, which ultimately had a positive impact on the ETH/USD, as the two are negatively correlated.

Ethereum has struggled to establish traction over $4,175 and $4,200. ETH began a new fall, trading below the $4,100 support level. A closure below $4,100 occurred, as did a close below the 100 hourly simple moving average. Furthermore, on the ETH/USD hourly chart, there was a breach below a significant bullish trend line, with support near $4,080. The pair traded below the 50 percent Fib retracement level of the rebound wave from the downswing to $3,833, to the upswing to $4,176.

It is presently displaying a few bearish indicators below $4,100. The $4,050 level is the first point of resistance to the upside, and the first significant barrier is located near $4,100 and the 100 hourly SMA.

The next major stumbling block is at around $4,175. A decisive break and closing over $4,175 might set the ground for a steady climb in the near term. In the scenario above, the price may breach the $4,250 resistance in the near future. The next significant resistance is located near $4,350.

If Ethereum fails to begin an uptrend above $4,100, it may extend its downward trend. On the bearish side, initial support is near the $4,000 mark. The main support level is presently emerging near $3,960.

The 61.8 percent Fib retracement of the rebound wave from the $3,833 downswing to the $4,176 upswing is very close to the $3,960 support zone. If there is a definite break below the $3,960 support, the price may continue to fall. The next critical breakdown support level is $3,850, below which the price may fall to $3,600. Good luck!