This week, the price of Ethereum (ETH) broke through the convergence area of long-term resistance levels and almost reached $3,000.
An indicator that gives a bullish signal for ETH
The weekly timeframe shows that the price of ETH has been rising rapidly since October 2023.
Last week it broke through a long-term horizontal area that has acted as support and resistance alternately since June 2021 . The bullish breakout allowed Ethereum to reach a high of $2,984. This is the highest level since April 2022.
Source: TradingView
Weekly Relative Strength Index (RSI) is giving an extremely bullish signal. It is rising and has just risen above the 70 mark (red icon). In the previous bull cycle (green vertical trend line), this event preceded a sharp rally to the all-time high.
What analysts say
Cryptocurrency traders and analysts on Platform X (formerly Twitter) are positive about the prospects for Ethereum.
CryptoMichNL believes that ETH will outpace Bitcoin (BTC) in growth rates:
“#Ethereum at $2,980. This is still a massive milestone for the transition from Bitcoin to Ethereum. Upward momentum continues in Ethereum, not Bitcoin.”
InmortalCrypto also believes that ETH will outperform BTC due to the bullish ETH/BTC chart, while CredibleCrypto predicts that the ETH price will rise after a potential short-term decline:
ETH/USDT daily chart. Source: X
Ethereum forecast: should we expect an all-time high?
An analysis of price dynamics since May 2022 reveals all the signs of an impulse upward movement.
Last week, ETH broke through two important resistance levels. One of them was the resistance line of the ascending parallel channel, built from the 2022 low. Prior to this, the token made two unsuccessful attempts to break out of this channel.
The second resistance is the middle line of the long-term range (white), existing since 2021.
Thus, Ethereum price action and indicator signals indicate that the ongoing upward movement is impulsive and will eventually lead to a new all-time high. The high of the range is located at $4,000, which is 35% higher than the current price.
Source: TradingView
Despite this bullish outlook, a close of ETH below $2,700 could result in a nearly 20% drop to the channel's midline at $2,500.
Telegram channel
Trusted
Disclaimer
All information contained on our website is published on the principles of good faith and objectivity, and for informational purposes only.. The reader bears full responsibility for any actions he takes on the basis of the information received on our website.