Ethereum Faces Crucial Test at $2,150 Support Level
As 2024 unfolds, Ethereum (ETH) faces a pivotal moment. After a strong start to the year, ETH now finds itself perched above a crucial $2,150 support level. Join us as we delve into Ethereum's recent journey and explore varying analyst perspectives on its future.
At the dawn of 2024, Ethereum (ETH) surged impressively, reaching heights unseen since May 2022. However, this rally lost momentum after January 12. ETH currently hovers above a critical horizontal support zone that has held for over a month.
Chart by TradingView
Ethereum's Recent Journey
Ethereum's weekly technical analysis reveals a fascinating journey. The price steadily climbed alongside an ascending support trendline, with an acceleration noted in October 2023. This surge led to a breakout from a horizontal range that had played the role of both support and resistance for nearly 1,000 days, barring a brief deviation in April.
The rally peaked at $2,720 on January 12, 2024, but since then, ETH has been on a downward trajectory, painting a bearish picture in the weekly timeframe.
Analyst Perspectives
The weekly Relative Strength Index (RSI) confirms a bearish sentiment. This momentum indicator helps traders gauge overbought or oversold market conditions.
An RSI reading above 50 during an uptrend favors bulls, while below 50 suggests bearish momentum. Currently, the momentum stands below 50 since last week.
Crypto analysts are divided on ETH's future. Some predict a short-term dip followed by a significant uptrend, while others foresee ETH appreciating against Bitcoin (BTC) due to several factors, including the launch of Ethereum Spot ETF and network upgrades aimed at cost reduction.
However, CredibleCrypto believes that the ETH/BTC pair hasn't found its bottom yet and expects further decline.
In the daily timeframe, ETH broke below a 95-day ascending support trendline on January 23. Currently, ETH rests at the $2,150 horizontal support zone. A breakdown from here could lead to a drop toward the ascending support trendline.
Looking Ahead: If ETH experiences a strong bounce from the $2,150 support area, it could spark an increase toward the $3,500 resistance.
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