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Ethereum, the second-largest crypto by market cap, has recently been retracing, with the coin’s price standing at around $2,171 as of writing this report. This price action comes after a long bear pattern that scared away many investors, leaving many to think the asset could continue tanking. Instead, the primary cause of this bullish move was Elon Musk’s influence.
The buying pressure of Ethereum increased on Thursday by a tremendous rate, with investor confidence being high in many top exchanges. However, for over 20 days before 22nd July, Ethereum experienced a bear market. The coin, which had surged to over $4k, dropped to $1.7k, crashing below most support levels.
However, since the big wake on Thursday, Ethereum has been experiencing a bullish run. As mentioned earlier, the prices surged to about $2,171, surpassing all the earlier stated resistance levels.
The activities behind Ethereum are currently surging, with many investors purchasing the coin. As a result, there is a massive possibility that due to the buying pressure and the social media support, Ethereum could surpass even the next resistance levels, probably even hitting $2,700.
For the prices to continue increasing steadily, more investors should show confidence in Ethereum to increase the price actions. One issue that could hinder Ethereum’s prices from surpassing the high resistance levels could be investors’ fear or reluctance to purchase the asset.
Experts have insinuated that Ethereum mimics the price actions of Bitcoin. Therefore, if Bitcoin’s prices go past the current resistance level, Ethereum could also benefit vastly.
Possible Price Plunges?
Ethereum began the day in a bullish run at the price of $2,094.46 but suddenly changed course, hitting $2.04k. However, a few hours later, the coin reversed course to a bullish pattern, leading to tremendous price surges. So, as things stand currently, it’s safe to say that Bitcoin is on the right course. But, what could happen if the buying pressure reduces?
Primarily, if any negative changes occur in terms of investors’ buying pressure, Ethereum could drop in value vastly. Take, for instance, the current support level in Ether’s price is around $2,050. If the prices drop below the support level, that could open the coin to even more price drops, leading the support level to $1,800s.
However, at such low prices, many investors will be interested in purchasing the coin to take advantage of the next bullish session. As such, the coin’s price could reverse course and again gain prices vastly.
Elon Musk’s Continued Influence in Crypto
Famous people, KOL, influencers, and celebrities have a significant impact on driving the price actions of popular crypto assets. For example, Elon Musk’s comments on holding Bitcoin during a recent forum are the main thing that drove Ethereum’s price.
Other celebrities have also stated that they own some crypto, which was seen in the crypto world. The past few days have clearly shown that cryptocurrencies can be vastly affected by the influence of the KOL in the markets. Bitcoin’s, Ether’s, and Crypto’s retracements in the recent past give a lot of hope for the future of crypto.