ETH price may have bottomed in January following its sharpest rebound to date in a bear market.
The price of Ether (ETH) has pulled back to retest $3,000 support levels on Feb. 9 after Ethereum’s native token reached a three-week high.
ETH price climbs to three-week high
To date, ETH price has recovered by roughly 50% after the ETH/USD trading pair bottomed near $2,150 on Jan. 24.
ETH/USD daily price chart. Source: TradingView
ETH price jumped on Feb. 7 in part due to KPMG, one of the world’s four accounting giants, announcing that the firm is adding Bitcoin (BTC) and Ether to its Canadian division’s balance sheet. Bitcoin rallied to over $45,500 in the wake of the news, its best level in almost a month.
However, the Big Four accounting giant chose not to disclose the degree of its exposure in the Bitcoin and Ether markets. But KPMG did state that it is helping its clientele “navigate” the world of crypto assets.
Anthony Pompliano, partner at Pomp Investments, called KPMG’s move “incredibly forward-thinking,” noting that their involvement would strike confidence in their clients that might have been considering adding crypto assets to their balance sheets. Excerpts from his note published Tuesday:
“Over a long enough timeframe, it feels like corporate demand will continue to explode and these assets will benefit from persistent buys, along with long-term holders, for years and decades to come.”
ETH to $4K next?
Ether price recently logged its seventh 50% drawdown in history in what many called a new “crypto winter.” But the ETH/USD pair recovered half of its losses by rising from its bottom level of $2,150 to as high as $3,234 in less than three weeks.
ETH/USD daily price chart with Fibonacci-based support/resistance target levels. Source: TradingView
This was Ether’s fastest recovery to date from a bearish cycle, compared to its average recovery time of 165 days, notes a new report by Arcane Research.
“ETH decreased 94% from its ATH during the 2018 crypto winter, compared to the 50% dip in March 2016, which recovered in just 67 days,” Arcane Research wrote, adding:
“Ethereum and the broader crypto ecosystem look very different from 2016-2018. Still, if history is any indication, and leaving out a new glacial period like 2018, we could perhaps see prices back in the $4,000 range as early as July 2022.”
ETH drawdown from ATH. Source: Arcane Research
Chris Burniske, a partner at Placeholder — a New York-based venture capital firm, also offered a bullish outlook for Ethereum albeit based on its expected transition this year to proof-of-stake from proof-of-work.
“2H 2022 could be great for ETH if the merge happens on schedule and the market structure of the asset goes through a huge shift from PoW to PoS.”
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