What Ethereum Needs to Rise Above $2000: Bloomberg Analyst

Ethereum (ETH) appears to be trapped below $2,000 after the stock rally failed to push it beyond its price point, according to Mike McGlone, senior macro strategist at Bloomberg Intelligence.

Here is what the analyst thinks Ethereum needs to break the 12-month resistance level.

The main resistance of Ethereum

in tweet On Thursday, McGlone said $2,000 looks like a “ceiling of resistance” given that ETH has failed to sustain itself above there, even though the Nasdaq 100 posted a 52-week high in the second quarter.

Historically, the relationship between cryptocurrency and high tech stocks has been strong. This was especially true in June 2022 when both asset classes collapsed under macroeconomic pressure, and ETH lost its $2,000 level.

contrast double f # Ethereum$2,000 ceiling –
Ethereum’s inability to stay above $2,000 despite its 52-week rally #NASDAQ The 100 stock index in the second quarter may herald a ceiling of resistance for cryptocurrencies. The token may be based on a stock ticker to lift all boats. pic.twitter.com/Q5dBSo4fTo

– Mike McGlone (@mikemcglone11) June 8, 2023

“The token may depend on the stock index to lift all boats,” McGlone added.

Besides their tangible correlation, investors have often compared Ethereum and altcoins to technical securities from an investor’s point of view.

Bill Miller, for example — a celebrity investor known for outperforming the stock market for over a decade — said last year that investors should view altcoins as “legitimate assets.” Rather, he and others incl Paul Tudor Jones She likened bitcoin to “digital gold” as a safe haven asset, inflation hedge, and form of resistance to bank failures.

Bitcoin has a relationship with gold Has risen In recent months after both assets have risen in the wake of several bank crashes in March, while their correlation with stocks has fallen. Given the impact of Bitcoin on the price of ETH and other assets, this may help explain why the rally in tech stocks has not prompted an increase in ETH along with it.

organizational pressure

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

Bitcoin and Ethereum are both down 1.5% over the week, while other altcoins such as Solana (SOL) and Cardano (ADA) are down 10% and 12%, respectively. The last two currencies are explicitly named as securities in the SEC Coinbase lawsuitAs a result, it is experiencing a similar drop in the price of XRP in 2020.

While Ethereum was not among the crypto assets to be classified as a security, the Securities and Exchange Commission (SEC) has implicit Many times that could fit the bill.