Ethereum Price Steadies Uptrend with Breakout above $2,400
Ethereum price has started the New Year on a bullish note, stabilizing its uptrend with a breakout above $2,400. The leading smart contracts token has extended its upward movement to $2,432, leading investors to believe that a breakout to $3,000 is likely.
However, caution is advised for traders looking to enter new long positions or close existing ones. It’s important to carefully consider the current market conditions and the potential risks involved.
Ethereum Price Prediction: Analysts Believe in the Likelihood of a Rally
Crypto analyst Rekt Capital suggests that Ethereum may have no other choice but to rally alongside Bitcoin. With Bitcoin breaking above $45,000 on the first day of the year, Ethereum is expected to follow suit and experience a remarkable rally.
Analysts point to a breakout from a period of consolidation as evidence that the tailwind behind ETH price will intensify in the near future.
Ethereum Price Correction Amidst Growing Selling Pressure
Currently trading at $2,369, Ethereum price is undergoing a correction from its previous highs. The Relative Strength Index (RSI) indicates that sellers are gaining momentum. With an RSI of 59 from overbought levels, there is a possibility of further downward movement.
If the short-term support at $2,360 holds, Ethereum price may reverse the forming downtrend and continue its upward movement towards $3,000. The 20 Exponential Moving Average (EMA) and the 50-day EMA are expected to provide support in case of intensified selling pressure.
Longer Timeframes Show Bullish Trend for Ethereum
The RSI remains slightly bullish on longer timeframes, such as the daily chart. This indicates that Ethereum holders should focus on the potential gains following consolidation between $2,200 support and $2,400 resistance, rather than short-term fluctuations.
The 20-day EMA at $2,280 and the 50-day EMA at $2,179 are expected to provide additional support. In case Ethereum price drops below the pivotal level of $2,000, the 200-day EMA at $1,850 will prevent further losses.
Ethereum Futures Open Interest Signals Positive Outlook
According to data provided by Coinglass, Ethereum futures open interest (OI) has surpassed $7.5 billion. The steady rise in OI indicates that investors have a positive outlook for ETH in the short term. This supports the bullish narrative and suggests that Ethereum could surpass $3,000 by the end of January.
Hot Take: Ethereum Price Set for a Strong Rally in 2024
Ethereum has started the year with a breakout above $2,400, signaling a strong uptrend. Analysts believe that Ethereum may rally alongside Bitcoin and experience significant gains in the coming months. Despite a correction and growing selling pressure, there is still potential for Ethereum price to reach $3,000. The steady rise in futures open interest further supports this bullish outlook. As traders and investors seek more exposure to ETH, the path of least resistance remains upward.
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