Bitcoin Sets New Support as Ethereum Looks to Reclaim $4,000 Price Target

The cryptocurrency industry woke up to bullish momentum, with the top assets printing impressive gains. Over the past 24 hours, the global crypto market cap has inched a 3.54% gain to top $2.35 trillion. Bitcoin (BTC) and Ethereum (ETH) arguably contributed the most gains to the combined market cap with over $973B and $462 billion, respectively.

Bitcoin Forms a Crucial Support at $51,500

After failing to breach the $51,000 price mark for more than a month, Bitcoin has received a steady upshoot in the past days as fueled by varying positive fundamentals. Forming new support at $51,500, the premier digital currency was trading at $51,756.52, atop a 3.26 % gain over the past 24 hours, according to CoinMarketCap.

Bitcoin’s growth looks promising in the short term. Many analysts, including Bloomberg Intelligence’s Mike McGlone, have pointed out that the path to the $100,000 price target has the least resistance compared to the growth from earlier in the year.

A look at the BTC/USD 4h chart on TradingView highlights similar sentiment with the bullish Short-Term Moving Average. There may be several retracements along the line in the coming days as the Relative Strength Index (RSI) shows BTC is in the overbought region. 

El Salvador is on track to officially launch Bitcoin as its legal tender. The adoption of the cryptocurrency is a bullish one for Bitcoin in the journey towards mainstream adoption. This development is a watershed moment in the drive towards the previous ATH and into new price territories.

Ethereum Looking to Breach the $4,000 Benchmark

Ethereum has had a more bullish run compared to Bitcoin thus far this year, and after inching a 23.89% in the past month, the cryptocurrency is on track to breach the $4,000 price level, a feat it has not been able to surmount since it hit its all-time high of $4,362.35 back in May. At the current price of $3,961.30, Ethereum’s potential to breach through the major resistance at $4,000 is now higher.

The number of fundamentals inherent in the Ethereum blockchain, including its deflationary features ushered in by the London Hardfork Upgrade and the proposed Ethereum 2.0 switch, has further increased the network’s outlook. These and the increasing growth of DeFi and NFTs are billed to increase the utility of the Ether coin, which can positively influence future price growth.

Image source: Shutterstock