- Ethereum recently had a relief rally but is still facing a significant technical barrier.
- It could see a 30% price swing, depending on whether bulls or bears take control.
- Ethereum needs to break above $2,500 and the 100-day average for a bullish trend to materialize in 2024.
Ethereum mounted a relief rally last week but remains stuck below a significant technical barrier that could determine its next major move. The crypto market’s No. 2 token by market cap faces the prospect of 30% price swings depending on whether bulls or bears claim victory.
After sliding within a striking level of $2,000 last month, ETH bounced off support confluence near the $2,200 mark. It reclaimed its 50-day moving average, turning that dynamic resistance into support.
However, upside momentum halted just under $2,500, which has kept Ethereum capped in the lower portion of its trading range from the better part of last year. A decisive breakout could spark a 30% ascent back toward higher peaks.
ETH rebounds but capped under $2,500 barrier
Conversely, failing to hold the 50-day average leaves ETH vulnerable to fulfilling recently-bearish falling wedge chart patterns. That would see the token plunge back toward the wide monthly swing lows.
For now, analysts say Ethereum appears to carve out an interim bottom following last year’s pummeling. But uncertainty persists without confirmation that overhead supply clearing will allow a durable push above $2,500 and the 100-day average just higher around $2,740.
At current prices under $2,300, positive signs like rising network usage have yet to sway investors, betting against more pain ahead. Price action remains indecisive, and trading volumes have been declining since last week’s spike. Both are prerequisites for calling a credible trend reversal.
Of course, bulls can quickly negate any ongoing threats by reclaiming January peaks and kicking off an assault on $3,000 resistance. That seems to be the prerequisite before forecasts of a bullish 2024 for ETH materialize into something credible.
