Ethereum hitting $4K by July? ETH price posts fastest recovery so far from 50% drop

After the ethereum native token hit a three-week high, the price of ETH pulled back on Feb. 9 to retest the $3,000 support level.

ETH price climbs to three-week high

ETH has recovered about 50% so far since the ETH/USD pair bottomed around $2,150 on Jan. 24.

ETH/USD daily price chart Source: TradingView

On Feb. 7, ETH prices rallied, in part after KPMG, one of the world's four largest accounting giants, announced that it was adding Bitcoin and Ethereum to the balance sheet of its Canadian branch. Following the news, bitcoin rallied to more than $45,500, its highest level in nearly a month.

However, KPMG chose not to disclose its exposure to the Bitcoin and Ethereum markets. But KPMG did say it was helping clients "navigate" the world of crypto assets.

Anthony Pompliano, a partner at Pomp Investments, called KPMG's move "incredibly forward-looking," noting that their participation will hit the confidence of clients who may be considering adding crypto assets to their balance sheets. He said on Tuesday:

"Over a long enough time frame, it feels like corporate demand will continue to explode and these assets will benefit from continued buying and long-term holders for years and decades to come."

Will ETH Hit $4K Next?

The Ethereum price recently posted its seventh 50% drop in history, leading many to call it a new "crypto winter." But in less than three weeks, ETH/USD recovered half of its losses from a bottom of $2,150 to a high of $3,234.

ETH/USD daily price chart, Fibonacci based support/resistance target levels Source: TradingView

A new report from Arcane Research states that this is Ethereum’s fastest recovery from a bear market cycle to date, compared to an average recovery time of 165 days.

“During the crypto winter of 2018, ETH fell 94% from its ATH and recovered 67 days after falling 50% from its ATH in March 2016,” wrote Arcane Research.

“Ethereum and the broader crypto ecosystem look very different compared to 2016-2018. Still, if history is any indication, and setting aside new ice ages like 2018, we could be in as early as 2022 July saw prices move back into the $4,000 range.”

ETH down from ATH Source: Arcane Research

Chris Burniske, a partner at New York-based venture capital firm Placeholder, also expressed optimism about ethereum's prospects, albeit based on expectations that ethereum will transition from proof-of-work to proof-of-stake this year.

“The second half of 2022 could be good for ETH if the merger goes on schedule and the asset’s market structure undergoes a massive transition from PoW to PoS.”

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