Ethereum Surges Above 550-Day Resistance, Analysts Optimistic About ETF Prospects

Ethereum, one of the leading cryptocurrencies, has been gaining momentum throughout the year, albeit with a relatively modest 90% increase. However, December witnessed a groundbreaking move as Ethereum surged above a critical resistance zone.

Examining the weekly chart, Ethereum's price has been steadily following an ascending support trendline since May. The last test of this trendline occurred in October, marked by a green icon. Following a bounce, the rally accelerated, resulting in a new annual high of $2,403 on December 8th. A pivotal moment during this ascent was the bullish breakthrough of the 550-day horizontal resistance area.

Previously, this area had served as support since April 2021, later transforming into resistance in May 2022, indicated by a red icon.

Cryptocurrency analyst and trader Pentoshi is optimistic about Ethereum's prospects, especially in light of the anticipated ETF launch. He commented, "We maintain a bullish sentiment on $BTC regarding the ETF, at 25-28k. Soon, we can replicate this with $ETH in 2024. Regardless of what you believe, it's all game theory. As the date approaches, people will be less willing to sell, and others will feel the need to buy. On the radar: $2,7xx and 3.4k."

Popular analyst Inmortal also shares a positive forecast, basing conclusions on trading ranges. Additionally, the RSI momentum indicator is on the rise, comfortably above the neutral 50 mark, a bullish sign. Notably, it is approaching overbought territory, a phenomenon that previously preceded substantial Ethereum price increases of 105% to 340%.

Despite bullish predictions, it is worth noting that a close below the $2,000 horizontal range could trigger a 25% decline towards the ascending support line at $1,650.