After weeks of consolidation, Ethereum (ETH) appears to be breaking out of its $3,200 to $3,500 trading range. Bullish technical indicators on the ETH chart, coupled with reinforcement fundamentals, suggest significant upside potential for the second-largest cryptocurrency by market capitalization.
Is Ethereum Eyeing a $4,000 Target?
Last month, Ethereum twice attempted to breach the critical resistance level of $4,000 but failed both times. Between December 16 and 19, ETH saw a sharp decline from $4,000 to $3,100, a drop of over 20% in three days.
Since December 19, ETH has remained range-bound, fluctuating between $3,200 and $3,500, raising concerns about a potential decline below the $3,000 level. However, ETH is showing signs of resurgence today, breaking out of a symmetrical triangle pattern, with $4,000 appearing as the first major resistance level to overcome.
Crypto trader and analyst Cold Blooded Shiller note that Ethereum’s weekly Relative Strength Index (RSI) has reset, which could provide the momentum needed to push ETH past $4,000. The analyst added that if ETH rises above $3,500, they plan to increase their spot holdings.
For the uninitiated, a weekly RSI reset occurs when the RSI, a momentum indicator, moves back from overbought or oversold levels toward its neutral zone, usually indicating that a potential trend reversal or consolidation is underway. . In the context of Ethereum, this reset could signal a reduction in selling pressure and a rebound opportunity.
Seasoned crypto trader TraderSZ echoed similar sentiments. In an article on X, the analyst shared Ethereum’s weekly and monthly charts, suggesting that an upside breakout could be imminent.
Another prominent cryptocurrency analyst, known as Inmortal, has weighed in on Ethereum’s potential price trajectory. In its analysis, Inmortal compared the current price development of ETH in the first quarter of 2024, highlighting the similarities between the two periods.
According to the following chart, January often serves as an accumulation phase, while February and March tend to experience parabolic price movements. If ETH follows a similar trend in 2025, it could target $5,300.
Will the rise of Ethereum trigger an Altseason?
While Bitcoin (BTC) has seen unprecedented price increases in 2024 – briefly touching six-figure territory – Ethereum has yet to experience comparable explosive growth. ETH’s current all-time high (ATH) was in November 2021, emphasizing that ETH is lagging BTC during this cycle.
However, recent market trends indicate that ETH could Finally gaining ground against BTC, as evidenced by the constantly increasing ETH/BTC ratio. Moreover, the dominance of Bitcoin appears ready for a decline after forming a lower high on the weekly chart.
This change could pave the way for the much-anticipated alt season, giving a boost to ETH and other altcoins. At press time, ETH is trading at $3,576, up 3.2% in the last 24 hours.
Featured image from Unsplash.com, charts from X and TradingView.com
