The cryptocurrency market had a poor start to the week as Bitcoin dropped below the $110k level. Ether also underformed earlier this week, dropping below $4.200. However, the market is now showing early signs of recovery, and this could be good for the leading cryptocurrencies. BTC and ETH show early signs of recovery Bitcoin is trading above $111k after adding 1% to its value in the last 24 hours. Ether is the second-best performer in the top 10, up 4.3% in the last 24 hours, and was only outperformed by Dogecoin. Thanks to this latest development, Ether is now trading above $4,600 and could rally higher in the coming hours and days. Traders are now betting that Ether could hit the $5k mark over the next few days. ETH’s chances of hitting $5,000 this month climbed to 26% on Polymarket, up from 16% just a few days ago. Analysts point out that Ethereum’s recent strength is mainly showcased by the level of flows into it. Ethereum is getting a lot of traction from institutional investors, with Ethereum treasuries raising millions of dollars to buy more ETH. Standard Chartered’s global head of digital assets research, Geoffrey Kendrick, believes that Ethereum and companies holding on their balance sheets are currently undervalued. He stated that, Given that the ETH treasury companies are able to capture ETH’s 3% staking yield, I see no reason for the NAV multiples to be below MSTR’s multiple (which captures no such staking yield). Kendrick points out that ETH treasury companies currently hold 2.6% of all Ether tokens, but this could rise to 10% over the next few months. If this happens, Ether’s price could soar higher, and this could also boost the stocks of those companies. Ether eyes the $5K high The ETH/USD 4-hour chart remains bullish and efficient as the broader market shows early signs of recovery. Ether hit a new all-time high of $4,956 on Sunday but failed to rally higher, losing 8.45% of its value the next day. However, it recovered 4.3% on Tuesday, closing above its daily resistance at $4,488. At the time of writing on Wednesday, ETH is trading at $4,614. The technical indicators are bullish, suggesting that buyers are regaining control. The MACD lines have crossed into the positive zone, while the RSI of 54 shows that the ETH/USD pair is switching into a bullish mode. If ETH continues its recovery, it could extend the rally towards its all-time high price of $4,956. An extended bullish run would allow ETH to surpass $5k for the first time in its history. However, if ETH faces a correction, it could extend the decline to retest its next major support at $4,203. The post Ether targets $5K as market shows early signs of recovery: check forecast appeared first on Invezz
