The Ethereum (ETH) Price Performance in 2023
In 2023, the price of Ethereum (ETH) saw a relatively modest increase of only 90%. This raises the question of whether 2024 will bring better performance for this altcoin or if it will continue to underperform.
Ethereum Consolidates After Breakout
After falling to a low of $881 in June 2022, the ETH price has been on the rise. However, it has struggled to break out from its range high multiple times, except for a deviation in April 2023. The breakout in November was significant because the area had previously acted as both support and resistance since 2021.
What Do the Analysts Say?
Despite its underperformance so far, cryptocurrency traders and analysts remain bullish about Ethereum’s future outlook. Trader Mayne predicts that ETH will soon catch up and suggests that after Bitcoin reaches $48-$50k, Ethereum will rise to $3400. CryptoMichNL believes that the ETH price will soon bottom against BTC, especially considering the bullish trend seen in previous Q1 periods. CrediBULL Crypto is also short-term bullish on Ethereum and expects a higher low soon.
ETH Price Prediction: When Will Ethereum Regain Footing?
The Ethereum dominance is currently below a long-term support level at 17%, which has acted as resistance and support since 2021. Although the price briefly fell below this level, it has not yet closed below it on a weekly basis. Despite the decrease in dominance, Ethereum Layer-2’s total value locked has reached a new all-time high. The weekly RSI is also in oversold territory, similar to previous instances before significant upward movements. This suggests the potential for a positive correlation between ETH dominance and price increase.
The ETH price has broken out from the $1,950 horizontal resistance area but has not shown significant acceleration. With virtually no resistance until $3,500, there is potential for a substantial appreciation of Ethereum in the first half of 2024. However, a weekly close below $1,950 could trigger a 25% drop to the ascending support trend line at $1,700.
Hot Take: Will Ethereum Overcome its Underperformance in 2024?
Despite its underwhelming performance in 2023, there are optimistic signs for Ethereum’s future. Analysts and traders expect ETH to catch up and show positive momentum. The breakout from previous resistance levels and the potential for bullish divergence in the RSI indicate the possibility of a significant price increase. However, it is important to monitor key levels such as $1,950 to determine if Ethereum can overcome its underperformance and regain its footing in 2024.
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