Ethereum’s Current Market Indicators Suggest a Continuing Bullish Trend
Ethereum has emerged as an important player in the cryptocurrency market, providing new features/use cases and breaking down the barrier of what’s considered to be possible in the blockchain industry. Technological advancements such as smart contracts and non-fungible tokens wouldn’t be possible without Ethereum. Ethereum’s considerable acceptance, thriving developer community, and role in DeFi give it an edge over its competitors. Ethereum is displaying encouraging patterns, so crypto investing has edged into the mainstream, meaning it’s likely we’ll see more demand for spending cryptocurrency. Blockchain educational platforms are useful for newer converts as they learn how to buy Ethereum with dollars and so on.
The latest market development shows that Ethereum is robust, holding high above the $2,200 mark. The digital currency is currently trading at $2,231.79 per ETH/USD, a surge that coincides with a rise in interest and long positions, indicating an unease over the fear of losing a profitable trade. While not everyone is ready to say we’re in a bull market right now, financial advisors largely agree about how to invest during one. The Ethereum price began an upward movement in November and is fast approaching its yearly high. Higher profits and the expectations of still-higher profits cause investors to pay more for cryptocurrency.
Ethereum’s Growth Potential in The Current Bull Market Remains High
In the first half of 202, Ethereum traded just under $2,000 at an average price of $1,800. Ethereum is presently ranked number two in the cryptocurrency ecosystem; the circulating supply is 120.22 million, with a market cap of $267.65 billion. Ethereum broke above $2,200 for the first time in 1.5 years in December with a considerable whale accumulation. Given its significant impact, it’s one of the best cryptocurrencies to invest in. According to cryptocurrency analysts, the spike in ETH’s price will continue amid enhanced accumulation by non-exchange whales. Whales can manipulate the market, so when they accumulate Ethereum, the price is likely to be bullish.
Ethereum has been trending upwards in 2023, but the question now is whether it can sustain this bullish momentum. A cryptocurrency bull market is forecasted for 2024 on account of the Bitcoin halving in April, potentially leaving millions out of pocket. A bull market typically begins when a bear market is no more. We could see the approval of a Bitcoin or Ethereum ETF, which could have a positive effect on the price of the digital asset. One concern is that the SEC will take action against Ethereum, clarifying whether it’s a security or not. Protecting investors would mean protecting them from the cryptocurrency.
What’s A Bull Market, And How Can Ethereum Investors Benefit from One?
The terms bear and bull market, which originates from traditional finance, have been adopted by cryptocurrency traders and investors to make reference to the cyclical behavior of the market. A bull market occurs when the prices of a cryptocurrency, that is, Ethereum, increase dramatically or are expected to continue to rise. The term “bull market” derives from the Charging Bull, known as the Wall Street Bull, which has become a universal symbol of the stock market and big business. In a bull market, traders and investors want to go long, meaning they take advantage of the rising prices by buying assets early and watching them rise in value. The cryptocurrency is sold when it reaches a high.
So, a bull market is a thriving market whose trajectory is illustrated by the horns of the bull rearing upwards. As a rule, bull runs in the cryptocurrency markets have been much stronger than in the equity markets, with stupendous assets rallying by several hundred or thousand percent. Market participants feel optimistic about the future, so they’re more willing to take on risks on the assumption that prices will continue to rise. The bull market goes on for as long as supply is exceeded by demand. The upward movement within the cryptocurrency markets typically lasts four years, followed by a remarkable drop in prices.
If You Want to Benefit From A Bull Market, You Should
Investing in Ethereum is more complicated than it seems at first glance. Buying too soon or too late can make a world of difference. You should never invest money you’re not willing to lose. Although we’re currently in a bull market, you can still lose money in the cryptocurrency markets. If you’d like to take advantage of the market price movements and buy and own Ethereum, here’s what you need to do:
- Opt For Long Positions Using Leveraged Derivatives
Buy early to leverage the rising prices and sell Ethereum when it’s reached its peak. There’s no better time than now to take a long position and invest in cryptocurrency. If you want to take a speculative position that matches the anticipation of an ongoing price increase, opt for CFD trading that uses leverage. You get access to the underlying asset without buying it outright, taking profit from the price movement. Not owning Ethereum enables you to trade in a user-friendly and more cost-effective way. When trading with leverage, the profits are calculated according to the full size of your position.
- Follow The Market Momentum
The market momentum will guide you on whether to buy or sell. You can use the momentum as a trading technique to profit from the trading behavior of market psychology. More exactly, you can buy high and sell higher, but make sure to protect yourself against moves to new highs or lows and take advantage of the moments when other investors are retreating. You don’t necessarily have to attempt to find the top and bottom of the bull trend – just focus on the main body of the Ethereum price move. The duration of a trade can depend on how long the bull trend maintains its strength.
Wrapping It Up
Ethereum is now under bullish control for the immediate future, so trading activity in the market has increased. You can acquire ETH and liquidate your holdings as the cryptocurrency markets move into a bull run, but make sure to have an exit strategy. Sure, you might miss out on some market rebounds, but you can also protect your portfolio from price changes.
