Ethereum broke through key resistance levels
The weekly chart reveals a steady upward trend for Ethereum since June 2022. After forming two rising lows (green icons), the price experienced accelerated growth following each low.
In November 2023, the token surpassed a long-term horizontal resistance level and reached a high of $2,717 in January 2024. It is currently trading above the 0.382 Fibonacci retracement level. Although there was a brief correction, ETH has risen above short-term Fibonacci resistance, though it has yet to reach a new yearly high.
Source: TradingView
The weekly relative strength index (RSI) is providing mixed signals. While the indicator is declining, it remains above the neutral level of 50. Additionally, a triple bearish divergence (green) has formed, which often indicates impending downward movements.
Analysts’ perspectives
Cryptocurrency traders and analysts on Platform X hold a positive outlook for Ethereum.
InmortalCrypto believes that the bear market accumulation phase has come to an end:
3-day ETH/USDT chart. Source: X
On the other hand, OnChainDataNerd highlights that Ethereum’s co-founder is allegedly selling a portion of his assets, which serves as a wake-up call:
“15 hours ago, #Ethereum co-founder Jeffrey Wilcke (@jeffehh) contributed $4,300 ETH ($10.7 million) to the #Kraken platform at a price of $2,482. It is noteworthy that the last time he transferred tokens to #Kraken (22 thousand. $ETH or $41.1 million) at $1870 on June 5, 2023, just before the market crash. Its current balance is 146 thousand $ETH ($362 million).”
CryptoAnup considers the long-term trend to be bullish and predicts that the price will surpass $10,000 during the upcoming bull run. Additionally, MTI_Trading notes a recent short-term bullish breakout and anticipates that it will act as a catalyst for a rally towards $3,000.
When Bitcoin reaches $50,000
Will ETH first reach $2,000 or $3,000?
Similar to the weekly chart, the daily timeframe does not confirm the overall direction of the trend.
Although Ethereum has broken through the descending resistance line, a price rebound from $2,510 (red icon) occurred at the 0.618 Fibonacci retracement level.
Despite the correction, the daily RSI remains above the neutral level of 50, indicating a bullish trend.
If ETH successfully surpasses the 0.618 Fib retracement level, a new yearly high could be expected. Given the absence of immediate resistance levels on the chart, the price could potentially rise by 35% to the long-term 0.618 Fib level (white) at $3,350.
Source: TradingView
However, a close below intermediate support at $2,380 would jeopardize the upward movement. In such a scenario, Ethereum could experience an 8% drop towards the descending resistance line at $2,300.
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