Can Ethereum (ETH) Catch Up in 2024?
Date: 2024-01-06 Author: Dima Zakharov Categories: BLOCKCHAIN
Ethereum Consolidates after Bullish Breakout
In June 2022, Ethereum hit a low of $881 and gradually climbed back up. During its ascent, Ethereum attempted several bullish breakouts from its range (red marks), with the exception of a price deviation in April 2023 (red circle).
Breaking through this range was crucial, as it had alternated between providing support and resistance since 2021. In November, Ethereum finally achieved this breakthrough, but significant acceleration has yet to materialize.
What Analysts Say
Cryptocurrency traders and analysts on the X platform hold optimistic views on Ethereum, even though it hasn't demonstrated significant gains yet.
Trader Mayne believes that ETH will soon catch up and reach $3,400 after BTC strengthens to $48-$50 thousand.
CryptoMichNL predicts that ETH's price will soon hit a bottom against BTC. He also points out that the first quarter has historically been bullish for this pair.
CrediBULL Crypto suggests that the price will form a higher low and accelerate its growth in the near future.
When Will ETH Recover Its Position
Ethereum's dominance is currently below the long-term support at 17%. This is crucial because this level has alternated between being resistance and support since 2021, except for a deviation in June (green circle). Although the price briefly dipped below the support area, it has not closed a week below this level yet.
Furthermore, the weekly RSI is in oversold territory (green marks). The last two times it reached such levels, it led to significant upward movements.
The weekly RSI could also generate bullish divergence signals (green color). A similar signal preceded a 200% surge in 2020.
Potential Upside for Ethereum
The potential upward dynamics of Ethereum's dominance align positively with its price growth.
As mentioned earlier, the token broke through the horizontal resistance area at $1,950 but has yet to accelerate its pace. Additionally, there is little significant resistance up to $3,500 (55% higher than the current price), suggesting substantial growth potential for Ethereum in the first half of 2024.
Despite this bullish forecast, a weekly close below $1,950 could trigger a 25% decline to the ascending support line at $1,700.
