Bloomberg Intelligence senior macro strategist Mike McGlone says that Ethereum’s (ETH) future price hinges on it maintaining a key support level.
McGlone says that if Ethereum’s support level at $1,000 crumbles, the second-largest crypto asset could fall to a two-year low of around $500.
“Representing more of the financial-markets revolution that’s happening in cryptos akin to the advent of futures and exchange-traded funds, Ethereum support around $1,000 may be the key pivot.
Our graphic shows the enduring upward performance trajectory of the No. 2 crypto vs. Bitcoin and lack of support until about $500 if $1,000 is breached.”
Ethereum is trading at $1,258 at time of writing, up 3.39% on the day.
According to McGlone, Ethereum’s shift to a proof of stake consensus mechanism has positively impacted its price in relative terms.
“Shifting to proof of stake amid the energy crisis, Ethereum as the leading platform for crypto dollars has provided some relative buoyancy.”
Turning to Bitcoin (BTC), McGlone says that the flagship crypto asset needs to turn the $20,000 resistance level to support to ensure a bullish outcome.
“Sustaining above $20,000 should be necessary to affirm recovery at levels we expect will eventually return Bitcoin to an elongated upward trajectory. Relapsing toward good support in the $10,000 – $12,000 area is the downside risk.”
Bitcoin is trading at $16,897 at time of writing, flat on the day.
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