Ethereum has recently broken its all-time high. Even though the price has retraced a bit, things look good as of now. Seeing the current scenario, it will be okay to say that Ethereum could soon enter price discovery mode. And this could take the price of the coin straight to $5,000 pretty fast. Bitcoin is also above $60,000, which gives strength to the market. And since it is moving slow, we can expect other coins to move faster.
The price discovery mode we are talking about is going to be really important for Ethereum. This happens when the price breaks an all-time high and reaches a level where it has never been before. In these price levels, there are no resistances which allows the coin to move and test new levels easily freely. And ultimately, after new levels are touched, the price retraces to make support and then move up again. For example, Ethereum could hit $6,000 and then retrace back to $5,000 before slowly moving back again.
It is also the reason you won’t generally see the price of a token near its all-time high for too long. As there is always a retracement after price discovery. And therefore, if you are able to guess that level and book profits before entering at a lower level again, it is a pretty good thing.
Bitcoin also sees the same road ahead as Ethereum. Once it breaks the new ATH, the price discovery can begin, and we can hit $85k very fast. There is a resistance there based on a technical, market cycle, and on-chain basis. But before that, it’s a straight road, and movements are expected to be pretty simple. After this hurdle, we can finally reach the $100k mark, which will be another big achievement for Bitcoin. It will be at this point when the laser eyes can finally be let go, and Bitcoin will become a 6 figure asset. Before that, we are also going to cross the market cap of Silver which is also expected to be bullish for Bitcoin.
What are your thoughts on the analysis that Ethereum could soon enter price discovery? And what do you think will be the level before retracements begin? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.