Emily Walker
Ethereum (ETH) has recently broken out of its trading range of $3,200 to $3,500, showing positive technical indicators and strengthening fundamentals. This suggests that significant price gains could be on the horizon for the second-largest cryptocurrency by market capitalization.
Is Ethereum Aiming for $4,000?
In the previous month, Ethereum made attempts to breach the $4,000 resistance level but faced setbacks. A notable decline occurred between December 16 and December 19, where ETH plummeted from $4,000 to approximately $3,100, marking a decrease of over 20% within three days.
Since December 19, Ethereum has largely remained within the $3,200 to $3,500 range, leading to concerns about dipping below the $3,000 mark. However, today ETH shows signs of recovery, breaking out from a symmetrical triangle pattern, with $4,000 now identified as a vital resistance point to surpass.
Crypto trader and analyst Cold Blooded Shiller pointed out that Ethereum’s weekly Relative Strength Index (RSI) has reset, potentially providing the momentum needed to exceed the $4,000 barrier. They mentioned plans to increase spot holdings if ETH also surpasses the $3,500 level.
The term “weekly RSI reset” refers to a phenomenon where the RSI, used to gauge momentum, returns from extreme overbought/oversold conditions back to neutral. This could indicate a potential shift in trend or consolidation phase. For Ethereum, such a reset may reflect diminished selling pressure and an opportunity for price recovery.
Experienced trader TraderSZ shared similar views, providing insights through weekly and monthly Ethereum charts that indicate an impending upward breakout.
Another respected analyst, Inmortal, offered thoughts on Ethereum’s future price path, likening current market behavior to that of Q1 2024. They indicated that January often signifies an accumulation phase, followed by dynamic price increases in February and March. If this pattern repeats in 2025, ETH could potentially reach $5,300.
Could Ethereum’s Growth Trigger an Altseason?
While Bitcoin (BTC) experienced remarkable price increases in 2024, even approaching six figures, Ethereum has yet to see similar explosive growth. The current all-time high for ETH dates back to November 2021, indicating it has not kept pace with BTC during this market cycle.
Recent market movements suggest that ETH might be closing in on BTC, as shown by the rising ETH/BTC ratio. Moreover, Bitcoin’s market dominance may begin to decline following the establishment of a lower high in the weekly chart.
This transition may create favorable conditions for a long-awaited altseason, potentially benefitting ETH along with other altcoins. As of now, ETH is trading at $3,576, reflecting a 3.2% increase over the past day.
