Ethereum Price Correction Following Strong Bullish Trend

Ethereum’s value plunged by 3 percent in yesterday’s trading session, extending Wednesday’s percentage drop. However, the bearish trend looked more like a price correction of a strong bullish trend that has seen Ethereum value surge by over 20 percent in the past three weeks. Today, the bullish trend looks to be resuming, with the price already up by a percentage point and intraday data from lower time frames looking aggressively bullish. 

What is Happening with Ethereum?

PayPal has announced that it will be integrating with MetaMask, a Web3 wallet, to allow users to buy the cryptocurrency Ether using PayPal. MetaMask is a popular choice for interacting with Web3 applications, and the integration with PayPal will make it easier for users to explore the Web3 ecosystem. The feature will initially be available to select U.S.-based MetaMask customers, with a rollout to all U.S. users in the coming weeks.

This is not the first time PayPal has embraced cryptocurrency. In 2020, the company first gave customers the ability to buy, hold, and sell cryptocurrency on its platform, and in 2021 it added a “checkout with crypto” feature that supported Bitcoin, Litecoin, Ethereum, and Bitcoin Cash. In June of this year, PayPal also allowed its customers to transfer any cryptocurrency they had bought on the platform to other wallets or exchanges.

PayPal’s move to integrate with MetaMask follows the launch of a similar tool by competitor Stripe last week. Stripe’s tool aims to help Web3 companies, including games and NFT marketplaces, allow their customers to buy cryptocurrency using fiat currencies like the U.S. dollar. The payments company has partnerships with Apple and Walmart and will also handle fraud, compliance, and KYC checks.

Integrating PayPal with MetaMask could potentially broaden the customer base for Ethereum and other cryptocurrencies, as it may make it easier for users to buy and transfer Ether. This could increase adoption and potentially drive demand for Ethereum.

In other positive developments about Ethereum, Coinbase, one of the largest cryptocurrency exchanges in the world, has launched a self-service asset recovery tool that allows users to recover unsupported ERC-20 tokens sent to a Coinbase address. ERC-20 tokens are cryptocurrencies created using the Ethereum blockchain, and while Coinbase supports many cryptocurrencies, there are thousands it does not. The tool will be rolled out to all users over the next few weeks, except for those in Japan or using Coinbase Prime. Recovery fees will be waived for amounts under $100, but amounts over $100 will be charged a 5% fee in addition to the separate network fee that applies to all recoveries. Coinbase may consider adding support for other asset recoveries in the future, but there are currently “no firm commitments” in place.

Price Forecast

In today’s trading session, Ethereum is up by a percentage point. Intraday trading data on lower time frame also shows Ethereum being in an aggressive bullish trend. On the daily chart below, the recent price action shows Ethereum in a long term bullish trend, which has seen its value surge by 20 percent since November 22. 

Therefore, based on price action, I expect the current Ethereum price surge to continue for the next few trading sessions. There is a high likelihood that we will see Ethereum price surging to trade above the $1,300 price level again in the next few trading sessions. However, a drop below $1,250 will invalidate my bullish analysis. Daily Chart

Ethereum Price Forecast