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Here Are Several Reasons Why Ethereum Price May Hit $5,000 in 2023

For the first time since May, the Ethereum price has surpassed $2,100. It broke past the barrier at $2,000 on April 12 after a successful Shapella upgrade, formerly known as Shanghai.

Bulls must close each day above this level to keep the advantage over bearish advances. All eyes are currently focused on the $2,000 barrier level since a break would drive the price of Ethereum to $2,400 or higher. At the time of writing, ETH is changing hands at $2,098.

here-are-several-reasons-why-ethereum-price-may-hit-5000-in-2023

ETH/USD 4-hour chart | Source: TradingView

Investors are flooding the market in large numbers due to the hype around the start of a bull market. This fear of missing out (FOMO) frequently contributes to momentum development in up-trending markets.

With its impressive performance since the year’s beginning, ETH is well-positioned to rally. The rise above $2,000 this past week indicated the beginnings of a bull market. Only if numerous market conditions are met in the upcoming months will a significant price surge to $5,000. For instance, Ether must maintain the $2,000 new support at all costs.

Even with a successful Shapella upgrade, which for the first time since the network switched to a Proof-of-Stake (PoS) protocol, allows investors who bet ETH to withdraw their tokens and the prizes received, this cannot be guaranteed.

Whales must maintain their gear if they want Ethereum demand to remain high. The regulatory environment in the sector is another crucial issue to consider.

With a vote on the Markets in Crypto-Assets (MiCA) likely later this month, Europe is one step closer to establishing a clear legal framework. There is now no chance for a quick resolution to the complex situation in the US. Clarity may or may not be provided by May’s summary ruling in the SEC v. Ripple litigation. Yet, the US strategy for digital assets in 2023 may either position the market for a bull run or prolong the crypto winter.

Despite this, the bullish sentiment surrounding the price of ether is still strong, and a break above $2,000 may signal the beginning of a steady ascent above $5,000.

Since the start of the year, and especially after thriving amid the American banking crisis, Bitcoin and Ethereum have consistently surpassed market expectations. March saw the failure of three cryptocurrency-friendly banks, including Silicon Valley Bank, Silvergate Bank, and Signature Bank (SVB). Regulators have been rushing to offer control since, upsetting many cryptocurrency-based businesses that can’t obtain banking partners. We will only be able to see in the near term if there is any further volatility.

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