The Ethereum price has gained by 1.5% in the past 24 hours, rising to $2,366 as the market’s biggest altcoin presumably benefits from Solana’s first outage in a year.
ETH has now risen by 2% in a week, 6% in a fortnight and by 7% in a month, with the alt also up by a healthy 43% in the last 12 months.
Yet such percentages are hardly excessive, and with the market gearing up for a more bullish phase in the coming months, the Ethereum price could see additional gains soon enough.
Ethereum Price Prediction as It Eyes $2,700 Spike – Is a New Rally Brewing?
ETH’s chart is showing some signs of recovery after a turbulent couple of weeks for the token.
Its indicators are picking up again, with its relative strength index (purple) risen above 50 yesterday for the first time in nearly two weeks.
Source: TradingView
Likewise, its 30-day moving average (yellow) has just turned ever so slightly upwards after flatlining since the end of last month, another sign of returning momentum.
What’s also encouraging about ETH is that, even with recent missteps and dips, its support level (green) has resisted any major fall, particularly to the lower levels it held back in October and November.
Much of this is to do with the fact that volumes for ETH far exceed those for any other altcoin, with the coin still seeing around $10 billion per day.
10,384 #ETH (24,679,282 USD) transferred from #Bitstamp to unknown wallethttps://t.co/TehVcowcYr
— Whale Alert (@whale_alert) February 7, 2024
Indeed, ETH almost always enjoys considerable activity among whales, who are never too shy to buy the coin in substantial quantities.
It’s also arguable that the market still undervalues ETH, which remains 51% down from its all-time high of $4,878, set back in November 2021.
As such, ETH has plenty of ground to recover, and it will be helped in this endeavor by its enviable fundamentals and the overall trajectory of the market.
Its blockchain still accounts for 57% of the total value locked of the entire crypto ecosystem, a percentage which doesn’t include Ethereum-based layer-two networks.
Meanwhile, it’s entirely possible that the next Bitcoin halving will help instigate a bull market, with Ethereum set to benefit more than most other alts.
The Ethereum price could therefore reach $3,000 by the summer, before pushing towards $4,000 by the end of the year.
Diversification with High-Potential Low-Cap Alts
As strong as ETH remains, its status as an established altcoin could mean that it experiences mostly steady growth this year.
However, traders more interested in quicker gains may prefer to look towards newer and smaller cap tokens, especially those that are still in the process of listing.
A good example of this comes with Sponge (SPONGE), an ERC-20 cryptocurrency first that listed – and rallied by as much as 150% – on centralized exchanges in April 2023.
It has this week launched the second version of its token, SPONGE V2, which replaces the previous version and runs on Polygon’s layer-two network.
Improving on its predecessor, SPONGE V2 boasts an improved staking model, which offers a variable rate of return that can rise into triple figures depending on staking numbers.
Exciting news, #SPONGERS! #SpongeV2 is now live! Visit our website to buy and stake $SPONGE V2.
Check it out below! https://t.co/nFOSl1ZCD9#MemeCoin #Web3 #Crypto #Altcoins #CryptoStaking pic.twitter.com/T4DCAKhcxF
— $SPONGE (@spongeoneth) February 6, 2024
In fact, the rate of return on staking stood at 245% at the last available count, with holders earning more if they keep their tokens staked for longer.
On top of this, SPONGE V2 will serve as the native token for an upcoming play-to-earn racing game.
This game will enable players to compete with each other to rank the highest on a global leaderboard, with the most successful players receiving rewards in SPONGE.
Combined with the new staking model, this looks like it could make SPONGE V2 even more profitable than its forerunner, with investors able to buy the token by going to the official Sponge website.
SPONGE is currently available for trading on Uniswap, while it will list on other exchanges in the coming weeks, potentially pushing its price much higher.
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