ETH has almost reached the $3 thousand mark. Let’s figure out whether this means the beginning of the growth of Ethereum, which will ultimately lead it to a new all-time high
This week, the price of Ethereum (ETH) broke through the convergence area of long-term resistance levels and almost reached $3,000.
Indicators Turn Bullish For ETH
The weekly timeframe shows that the price of ETH has been rising rapidly since October 2023. Last week it broke through a long-term horizontal area that has alternated between support and resistance since June 2021. This bullish breakout allowed Ethereum to reach a high of $2,984 yesterday, its highest level since April 2022.
The weekly relative strength index (RSI) is giving an extremely bullish signal. It is rising and has just risen above the 70 mark. In the previous bull cycle, this triggered an acceleration in the upward movement towards an all-time high.
What do analysts say?
Cryptocurrency traders and analysts on Platform X are positive about Ethereum’s prospects. CryptoMichNL believes that ETH will outperform Bitcoin ( BTC ) in the subsequent upward move, he said: “#Ethereum at $2,980. This is still a massive milestone for the transition from Bitcoin to Ethereum. Upward momentum continues in Ethereum, not Bitcoin.”
InmortalCrypto also believes that ETH will outperform BTC due to the bullish ETH/BTC chart, while CredibleCrypto predicts that the ETH price will rise after a potential short-term decline:
Ethereum Price Prediction: New All-Time High In The Making?
An analysis of price dynamics since May 2022 reveals all the signs of an impulse upward movement.
Last week, ETH broke through two important resistance levels. One of them was the resistance line of the ascending parallel channel, built from the 2022 low. Prior to this, the token made two unsuccessful attempts to break out of this channel.
The second resistance is the middle line of the long-term range existing since 2021.
Thus, Ethereum price action and indicator signals indicate that the ongoing upward movement is impulsive and will eventually lead to a new all-time high. The high of the range is located at $4,000, which is 35% higher than the current price.
Despite this bullish outlook, a close of ETH below $2,700 could result in a nearly 20% drop to the channel’s midline at $2,500.
Ethereum Fundamentals Are Stronger Than Ever
Currently, more than 25% of the circulating supply of ETH is locked in staking . This reduces the number of coins available for spot trading.
In addition, about 0.21% of the total asset is burned annually. According to Ultrasound.Money, the supply of Ethereum has decreased by 357,148 tokens worth approximately $947 million since the “merger” in September 2022. The launch of the long-awaited ETH spot ETFs will also reduce the available supply.
