The cryptocurrency markets rallied on Monday as Ethereum re-tested its $1,300 level. Bitcoin is above $17,000 for the first time this year while Solana, Cardano, and PolkaDot are rallying.
SOL skyrocketed 25%, ADA spiked 20%, and DOT is up nearly 9%. The rally gives investors’ a sigh of relief as the markets remained on the back foot last week. Monday’s spike is the first rally in 2023 and ETH last reached $1,300 on December 15, 2022.
You can read more details on why SOL, ADA, and DOT rallied on Monday here.
Also Read: Solana: Daily Active Wallets Spiked 3X Last Week
Will Ethereum Reach $1,700 Next?
Considering the markets continue to hold on to the current positive momentum, ETH could scale further reaching new monthly highs. Leading pseudonymous crypto analyst Altcoin Sherpa took to Twitter to predict that if ETH could consolidate and break the $1,400 level, it could likely touch $1,700 in the next leg.
“ETH: At a crucial place right now, checking out some higher time frame charts. If this soundly breaks past this level, I think $1,700 is possible. Wouldn’t be buying here though personally,” he tweeted.
Also Read: Solana Spikes 35% in 7 Days: Can SOL Reach $20 Next?
Could ETH Rally to $1,700? Here’s Our Take
Monday’s rally is most likely a bull trap and leading cryptos could head south just when investors feel confident about the market prospects. The rally could be short-lived as The U.S. Consumer Price Index (CPI) data will be released on Thursday.
If CPI numbers are higher, there are more chances of the Feds raising inflation rates again in February this year. Therefore, Ethereum reaching $1,700 might face resistance if the CPI numbers turn out to be higher than expected.
In conclusion, it is advised to be cautious and watch out for market sentiments before going all in on Ethereum.
Also Read: When is the Best Time to Buy Bitcoin? Wall Street Analysts Explain
At press time, Ethereum was trading at $1,312 and is up 3.8% in the 24 hours day trade. ETH is down 73.2% from its all-time high of $4,878, which it reached in November 2021.