The Ethereum (ETH) price performance
The Ethereum (ETH) price has not performed as well as other major cryptocurrencies this year, with only a 90% increase. However, the price recently broke out above a critical resistance area in December, which could potentially signal the start of a significant rally.
Ethereum Moves Above 550-Day Resistance
Since May, the Ethereum price has been following an ascending support trend line. In October, this trend line was validated, and it led to an acceleration of the rally. On December 8, ETH reached a new yearly high of $2,403 and broke through a 550-day horizontal resistance area that had previously acted as support.
Cryptocurrency analyst and trader bullish on Ethereum
Pentoshi, a cryptocurrency analyst and trader, is bullish on Ethereum due to the upcoming ETF. He believes that as the ETF date approaches, people will be less willing to sell and more inclined to buy. Another well-known analyst named Inmortal also holds a bullish view on Ethereum and uses range trading to come to his conclusion.
ETH Price Prediction: Indicator Predicts Rapid Increase
Traders can use the RSI as a momentum indicator to determine whether a market is overbought or oversold. Currently, the RSI for ETH is increasing and above 50, indicating bullish signs. The indicator has also nearly crossed into overbought territory, which has historically led to significant upward movements ranging from 105% to 340%.
Despite bullish predictions, caution remains
While there are positive indicators for Ethereum’s price potential, it’s important to note that a close below the $2,000 horizontal area could trigger a 25% decrease in price. Traders should exercise caution and monitor the market closely.
Hot Take: Ethereum’s Rally Could Gain Momentum in 2024
The Ethereum price has shown promising signs with its breakout above a key resistance area and positive indicators such as the RSI. Analysts and traders are optimistic about Ethereum’s potential, especially with the upcoming ETF. However, it’s crucial to stay vigilant and consider potential risks in the market.
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