Ethereum has surpassed a significant resistance level that has been in place for 550 days, indicating a bullish breakout. The weekly chart reveals that Ethereum has been steadily rising along an ascending support line since May. In October, this trend line was tested, marked by a green icon. Following this rebound, the rally gained momentum and resulted in a new yearly high of $2,403 on December 8. The breakout above the 550-day horizontal resistance area, which had previously acted as support in April 2021 and turned into resistance in May 2022 (as indicated by the red icon), is a crucial development.
Industry experts share an optimistic outlook for Ethereum, particularly with the anticipated launch of an ETF. Cryptocurrency analyst and trader Pentoshi believes that Ethereum will experience similar bullish momentum as Bitcoin did in 2024, stating that “no matter what you believe, it’s all game theory.” He identifies price targets of $2.7k and $3.4k. Popular analyst Inmortal also shares a positive sentiment, relying on trading ranges to make his conclusions.
Forecasts indicate that Ethereum’s RSI momentum indicator is rising and currently above the neutral level of 50, suggesting bullish market conditions. This indicator is on the verge of entering overbought territory, a pattern that has historically preceded significant upward movements ranging from 105% to 340%. As part of the current upward trend, the nearest resistance area at $3,400 represents a 55% increase from the current Ethereum price, while the all-time high is 105% higher.
While the overall outlook is bullish, there is a risk of a 25% decline if Ethereum closes below the $2,000 horizontal area, potentially reaching the ascending support line at $1,650.
It’s important to note that this information is sourced from TradingView and reflects the opinions and analysis of cryptocurrency experts.
Disclaimer: This content is for informational purposes only and should not be construed as investment advice. Cryptocurrency investments are subject to market risk, and individuals should conduct their own research and seek professional advice before making any investment decisions.