What Ethereum needs to rise above $2000: Bloomberg analyst

According to Mike McGlone, Senior Macro Strategist at Bloomberg Intelligence, Ethereum (ETH) appears to be trapped under $2000 after the stock rally failed to move past the price point.

The analyst here believes that Ethereum needs to break above a 12-month-long resistance level.

Ethereum’s Major Resistance

one in do On Thursday, McGlone said that $2000 looks like a “resistance range,” noting that ETH has failed to hold itself above it despite the NASDAQ 100 stock index hitting a 52-week high in Q2.

Historically, the correlation between cryptocurrencies and high-beta tech stocks has been strong. This was especially true in June 2022 when both asset classes collapsed under macroeconomic pressure, and ETH lost its $2000 level.

divergent weakness and #ethereum$2,000 cap –
Ethereum unable to stay above $2,000 despite 52-week high #nasdaq The 100 Stock Index may show a resistance range for the crypto in 2Q. Tokens can rely on stock indexes to lift all boats. pic.twitter.com/Q5dBSo4fTo

— Mike McGlone (@MikeMcGlone11) June 8, 2023

“Tokens can rely on stock indexes to lift all boats,” McGlone said.

Aside from their solid correlation, investors have often compared Ethereum and altcoins to tech securities from an investor’s perspective.

For example, Bill Miller – a renowned investor known for outperforming the stock market for more than a decade – said last year that investors should view altcoins as “venture assets”. alternatively, including that and others Paul Tudor Jones Bitcoin has been compared to “digital gold” as a safe-haven asset, inflation-hedged and resistant to bank failures.

bitcoin is correlated with gold Risen Both assets have rallied in recent months after several banks collapsed in March, while their correlation with stocks has waned. Given the impact of bitcoin on the price of ETH and other assets, this may help explain why the tech stock rally hasn’t lifted ETH along with it.

regulatory pressure

Crypto has also faced price pressure this week after two of the world’s largest crypto exchanges – Binance and Coinbase – were targeted with lawsuits by the US Securities and Exchange Commission (SEC).

Bitcoin and Ethereum have both fallen 1.5% on the week, while other coins such as Solana (SOL) and Cardano (ADA) have fallen 10% and 12%, respectively. The latter two coins were explicitly designated as securities in the SEC’s coinbase lawsuitThis resulted in a price decline similar to that of XRP in 2020.

Although Ethereum was not among the crypto assets classified as securities, the SEC has conceived There are times that it may fit the bill.