The Ethereum (ETH) price has experienced a decline after failing to reach a new yearly high on November 24. However, ETH is still trading above the $2,000 level. The question now is whether it will bounce back and attempt to reach a new high or if further lows are in store.
Ethereum Falls Before Yearly High
Analysis of the daily time frame reveals that Ethereum started an upward movement in October, breaking out from a descending resistance trend line that had been in place since its yearly high of $2,140 in April. However, the ETH price has not yet returned to validate this trend line as support.
On November 24, Ethereum created a lower high and a long upper wick, indicating selling pressure and failing to reach its yearly high.
What Are the Analysts Saying?
There is disagreement among cryptocurrency traders and analysts regarding the future price of ETH. ColdBloodShill suggests that the price could drop to the $1,900-$2,000 range before continuing its bullish trend. On the other hand, Satoshi Flipper believes that institutional capital entering Ethereum through spot ETFs will drive the price up. CryptoBusy notes a long-term resistance at $2,100 and predicts a potential explosive increase once it is broken.
ETH Price Prediction: Will Price Hold Above $2,000?
According to technical analysis using Elliott Wave theory, the most likely wave count suggests that ETH is currently in the C wave of an A-B-C corrective structure. This correction follows a five-wave upward movement that began in October. If waves A and C have a 1:1 ratio, ETH could drop to $1,900. Alternatively, if wave C extends to 1.61 times the length of wave A, ETH could fall to $1,760. However, if ETH surpasses the wave B high of $2,136, the correction will likely be over and the price could rise by 25% to reach the next resistance at $2,500.
Hot Take: ETH Price Outlook
The Ethereum price has experienced a setback after failing to reach a new yearly high. The technical analysis suggests that the price may continue to decline in the short term, potentially reaching support levels around $1,900-$2,000. However, there are bullish arguments as well, with expectations of institutional capital inflows and the potential for a breakout above key resistance levels. Ultimately, the direction of ETH’s price will depend on market sentiment and the overall performance of the cryptocurrency market.
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