Ethereum Heads for $3,500 Mark as Key Resistance Overcomes

Ethereum (ETH), one of the main cryptocurrencies on the market, has shown remarkable growth since October and is now facing a critical horizontal resistance area. This resistance, established since early 2022, is the current obstacle in Ethereum’s path to reaching the $3,500 target.

Since May 2022, the price of Ethereum has been following an ascending support trendline, validated several times, including recently in October 2023. From that point, ETH has recorded an impressive rise, creating eight bullish candles in eleven weeks , and is now forming the ninth. This pattern suggests a strong bullish trend for the cryptocurrency.

The immediate challenge for Ethereum is to overcome the horizontal resistance area that has been a point of contention since the beginning of 2022. This resistance has acted as a ceiling for the price of ETH, but a successful breakout could signal an upward move. significant.

Ethereum’s weekly Relative Strength Index (RSI) shows an increase, approaching overbought territory. Historically, similar conditions have catalyzed parabolic upward movements. The RSI, a momentum indicator, suggests that as long as it is above 50 and in an uptrend, bulls maintain the advantage.

Analyst Perspectives

$ETH / $USD – Update

$2,500 – $2,600 is the next target on #Ethereum pic.twitter.com/fMxMdtByx2

— Crypto Tony (@CryptoTony__) January 2, 2024

Cryptocurrency analysts and traders are optimistic about the future of Ethereum. Crypto Tony, for example, sees ETH’s next target between $2,500 and $2,600. CryptoMichNL believes Ethereum will surpass Bitcoin in 2024, and BrianH highlights Ethereum’s upcoming Cancún-Deneb upgrade. In this way, they aim to reduce transaction fees and improve Layer 2 scaling solutions.

ETH recently broke long-term resistance at $2,120 and validated it as support, paving the way to face minor resistance at $2,370. The daily RSI showing a hidden bullish divergence supports this rise. If Ethereum manages to close above this area, it could trigger a strong upward move, targeting the next resistance between $3,360 and $3,500, which represents a 40% increase from the current price.

While there is significant upside potential for Ethereum, a close below $2,370 could lead to a pullback to the $2,120 support area, representing a 12% drop.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.