Ethereum Price Targets: Is a 25% Upside Potential on the Horizon for ETH?
Ethereum Price Reversal – After a sharp drop in the altcoin market, Ethereum ($ETH) is showing signs of a potential reversal from key support zones. The market cap of all cryptocurrencies, excluding Bitcoin, saw a notable decline of 5.10%, dropping to $1.44 trillion, and Ethereum experienced a pullback of 2.85%. The question now arises: Could this correction lead to a continuation of the downtrend, or is a rally on the horizon?
Ethereum Price Analysis: Falling Channel and Potential Reversal
Ethereum has recently formed a falling channel pattern on the daily chart, signaling a bearish trend. Despite this, strong support at the 50% Fibonacci level of $3,158 has played a crucial role in stopping the price from falling further. This level has enabled Ethereum to bounce back, with a 2.51% intraday gain, pushing the price to $3,290 from an opening price of $3,211.
The current price action indicates that Ethereum may be witnessing a short-term correction after reaching a 24-hour high of $3,445, followed by a bearish candle. This has led many analysts to question if Ethereum will continue to test the $3,000 support level. However, lower price rejections in the two most recent candles indicate that Ethereum could be poised for a double-bottom reversal near the $3,158 support.
Bearish Indicators and Bullish Divergence: A Mixed Market Sentiment
Ethereum’s Relative Strength Index (RSI) has shown a strong bullish divergence, suggesting that the selling pressure may be easing. However, the 20-day and 50-day EMA lines have recently crossed over, creating a bearish crossover that could signal further downside in the short term.
Additionally, Ethereum’s open interest in the derivatives market has risen by 0.55%, surpassing the $31 billion mark, now standing at $31.45 billion. Despite this increase, the long-to-short ratio remains relatively bearish at 0.9554, signaling a lack of confidence among traders regarding the near-term outlook for Ethereum. On a more positive note, the funding rate for Ethereum has risen to 0.0108%, indicating some bullish sentiment among those holding long positions.
Ethereum Price Targets: Breakout Potential and Key Levels
If Ethereum can continue to recover and break through its falling-channel pattern, a breakout rally is possible. According to Fibonacci levels, Ethereum could face resistance at the 78.60% Fibonacci level at $3,692, and the 100% Fibonacci level at $4,091. If Ethereum manages to break these key resistance zones, a 25% upside potential could materialize in January.
However, a failure to hold above the 50% Fibonacci level and the 200-day EMA line could lead to a retest of the 38.20% Fibonacci level at $2,937, bringing the $3,000 psychological support level into play. Traders should remain cautious as Ethereum navigates these critical support and resistance zones.
Ethereum Foundation Sells 100 $ETH
The Ethereum Foundation has sold a total of 4,666 $ETH (worth $13.3 million) since January 2, 2024. Recently, the foundation sold another 100 $ETH. These sales could have a significant impact on Ethereum’s price and should be closely monitored by investors. This information was shared by Lookonchain.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
Leave a comment