Although Ethereum is struggling to regain momentum for the first quarter of 2024, currently approaching the psychological level of $3,000, one trader remains bullish.
Regarding X, analysts offer several reasons to allay skeptics’ concerns, even though the token is trading 30% below its March 2024 high, when the price topped $4,000. It seems that skepticism about future gains may be unfounded, as they paint an overly pessimistic picture of the outlook for the second most valuable cryptocurrency.
Ethereum is under pressure: Here’s why
Ethereum is in the midst of a bearish breakout pattern at press time following a sharp drop in mid-April. While there are signs of price strength, the pullback to $2,800 was not enough to ease concerns.
As the price fluctuates in a $500 range with upper limits at $2,800 and $3,300, there are opportunities for bulls, but sellers may also push prices lower and extend April’s losses.
There are multiple reasons to support the bearish prediction. Analysts have observed that some investors are still hesitant to invest in ETH due to Bitcoin and its expanding second-layer ecosystem.
The launch of the Rune Protocol has seen activity flow toward Bitcoin, boosting transaction fees on the world’s most valuable network. As can be seen on YCharts on May 10, transaction fees have fallen.
Beyond this, there are concerns that the U.S. Securities and Exchange Commission (SEC) may classify ETH as a security, leading to stricter regulation. Additionally, given the surge in activity on modern high-throughput blockchain Solana (mostly from meme coin projects), it is seen as a strong competitor.
The fairytale meme coin continues to make its mark in recent times. The price movements experienced have had a significant impact on the market while once again revealing the unpredictable nature of memecoin. While these occurred in memecoin, small investments on behalf of investors turned into huge gains.
The memecoin that made investors rich
Recent data shows that one lucky investor has made more than 86,000% by investing in the Ethereum (ETH)-based memecoin. Data revealed by Lookonchain, which is known for closely monitoring blockchain transactions, shows that one investor who bought $6,500 worth of MAGA (TRUMP) late last year now has more than $5.6 million.
Cryptocurrency investor "waxl.eth" turned $6,500 into $5.6 million with Trump, achieving an 870-fold return! He spent $6,500 to buy 2.08 million TRUMP through two wallets and sold 1.24 million TRUMP for $902,000, leaving 832,000 TRUMP worth $4.7 million.
The MAGA memecoin, which emerged in August 2023 and is centered around former U.S. President Donald Trump, currently appears to have a market cap of $298.3 million. As a result, it ranks 251st in the market capacity ranking. As of this writing, Trump’s buyer price is $5.48, down 8.2% in the past 24 hours.
Why is MAGA on the rise?
The price jumped 50% the other day after Trump made a pro-crypto statement at an event at Mar-a-Lago for supporters who purchased NFTs from his “Photo Editions” series.
During the event, Trump also talked about other topics. One of them was his announcement to accept cryptocurrency donations during his presidential campaign. On the other hand, he also ridiculed Biden and Boden, who centered on him.
According to separate data provided by Lookonchain, another cryptocurrency user followed a similar path. After purchasing hundreds of thousands of meme coins between December 2023 and January 2024, the person who also bought TRUMP made a profit of $4.4 million.
GCR: The address marked as “Address 1” spent 703,460 USDT to purchase 936,279 TRUMP from December 8, 2023 to January 18, 2024, and now has a variable profit of $4.4 million!
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