ETH's Rollercoaster Ride: Can It Reach $7,000?

ETH, the second-largest cryptocurrency by market capitalization, has been on a rollercoaster ride in recent months, with its price experiencing significant volatility. However, market predictions suggest that ETH could break the $7,000 mark, a milestone that would signify a remarkable recovery from its recent slump.

ETH's journey has been tumultuous, with the coin facing a major liquidation event following the imposition of new tariffs on China, Canada, and Mexico by former U.S. President Donald Trump. This event led to a significant price drop, with ETH's value plummeting to $2,120. However, the coin has since shown signs of recovery, trading at the $2,650 mark and surpassing the 50% Fibonacci retracement level.

Analysts believe that ETH's Simple Moving Average (SMA) of $2,850, which is moving upwards, indicates a potential breakout. To fully grow, ETH needs to overcome two major resistance points: one at $2,880 and the primary hurdle at 61.8% Fibonacci retracement. If ETH manages to break the $2,920 barrier, it could easily surpass the $3,000 resistance level and move towards the $3,120 level.

Investors have shown renewed interest in ETH, with organizations like Grayscale, Fidelity, and BlackRock acquiring around $100 million worth of the coin. This has helped build investors' confidence in ETH's potential. However, the Grayscale ETH Trust fund recently dumped close to $40.29 million, resulting in a total net inflow of $67.77 million. Despite this outflow, the total corpus of assets for ETH remains around $11.79 billion, indicating a strong foundation for future growth.