Ethereum is currently in a consolidation phase following a bullish breakout. In June 2022, ETH price reached a low of $881 and has been steadily rising since then. Throughout this growth process, the token has made several unsuccessful attempts at breaking out from the range, with the exception of a price deviation in April 2023. Breaking out of this area is crucial as it has alternated between acting as support and resistance since 2021. Finally, in November, ETH successfully broke through, although without significant acceleration.
In the previous cycle, the transition of the RSI momentum indicator to overbought territory became a catalyst for upward movement. According to cryptocurrency traders and analysts on Platform X, there is a bullish sentiment towards Ethereum, with expectations that it will catch up and reach $3,400 after Bitcoin strengthens to $48-$50 thousand. Others suggest that ETH will soon bottom out against BTC, with the first quarter historically being predominantly bullish for this pair. Additionally, there are suggestions that the price will form an increasing low and accelerate its rise.
As for when ETH will regain its position, Ethereum dominance is currently below long-term support at 17%. This level has acted as both resistance and support since 2021, except for a deviation in June. While the price has slightly fallen below this support area, it has not yet closed the week below it. Furthermore, the weekly RSI is in oversold territory, which has previously generated significant upward movements.
The potential upward trend of ETH dominance is expected to be positively correlated with price growth. The recent bullish breakout above the $1,950 horizontal resistance area suggests the possibility of accelerated growth. Additionally, there is virtually no significant resistance up to $3,500, indicating the potential for extensive growth in the first half of 2024.
However, it is important to note that a weekly close of ETH below $1,950 could trigger a 25% drop to the ascending support line at $1,700.
Overall, there is a bullish outlook for Ethereum, with expectations of continued growth. It is important to monitor key levels and indicators to gauge the potential for further acceleration or a potential drop.