Ethereum’s (ETH) price reached a new yearly high of $2,825 today, breaking out from a horizontal area in the process.
There is a noticeable lack of overhead resistance above the current level. Can ETH accelerate its rate of increase further?
Ethereum Moves Above the Middle of Its Range
The weekly time frame technical analysis shows the ETH price has increased since June 2022. After several failed attempts, ETH reclaimed the bottom of the range in March 2023 (green icon) and has not looked back since.
In January 2024, ETH reached a high of $2,717 but was rejected by the middle of the range (red icon).
However, it is making another breakout attempt this week. ETH reached a new yearly high of $2,825 today but has yet to reach a weekly close above the middle of the range since then.
ETH/USDT Weekly Chart. Source: TradingView
Traders utilize the RSI as a momentum indicator to assess whether a market is overbought or oversold and whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true. The RSI is increasing and just crossed above 70, both bullish signs.
What Are Analysts Saying?
Cryptocurrency traders and analysts on X positively view the future Ethereum trend.
Zsuirad Nezrok suggests the ETH price will reach $3,000 soon.
ETH/USDT Daily Chart. Source: D
Noblecoins suggests altcoins will increase significantly after Ethereum.
“$ETH just smashed $2800 , is time to see some of your favorite solid. #altcoins move parabolic. We are heading somewhere . Hope you are prepared legend !” He stated.
Vella Crypto has an even higher target of $3,400.
ETH Price Prediction: Is $4,000 in the Cards?
A closer look at the movement using horizontal levels and price patterns supports the continuation of the increase.
Firstly, ETH has broken out from the $2,500 horizontal area, which had acted as resistance and support since May 2021. While the Ethereum price has not reached a weekly close above this level, it is almost certain to do so by the end of the week.
Furthermore, ETH has broken out from the middle of an ascending parallel channel that has existed since June 2022. The channel’s resistance trend line coincides with the $3,600 resistance area, a likely level for a top. Therefore, the ETH price may increase by another 30% and reach it.
ETH/USDT Weekly Chart. Source: TradingView
Despite the bullish ETH price prediction, a close below $2,500 will lead to a 35% drop in the channel’s ascending support trend line at $1,800.
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