After weeks of stable movement, Ethereum (ETH) seems to be gearing up for a positive shift, escaping the trading zone of $3,200 to $3,500. Encouraging technical signals, paired with improving fundamentals, indicate strong potential for the second-largest cryptocurrency by market cap to surge.
Is Ethereum Targeting $4,000?
Last month, Ethereum made two attempts to break through the crucial $4,000 resistance but faced setbacks each time. A notable dip occurred between December 16 and December 19, where ETH plummeted over 20%, spiraling down from $4,000 to just $3,100.
Since that drop, ETH has bounced between $3,200 and $3,500, raising concerns about a possible drop below $3,000. Yet, recent movements hint at a revival, as ETH escapes a symmetrical triangle pattern, with $4,000 now at the forefront as a significant hurdle to surpass.
Reputable crypto trader and analyst Cold Blooded Shiller pointed out that Ethereum’s weekly Relative Strength Index (RSI) has reset, indicating that momentum could be building to push ETH past the $4,000 mark. Shiller mentioned plans to increase spot holdings if ETH surpasses $3,500.
For those new to crypto terms, when we say a weekly RSI reset occurs, we mean the RSI shifts from either overbought or oversold levels back toward a neutral stance. This movement typically hints at potential trend reversals or consolidation. In Ethereum’s case, this reset may signal diminished selling pressure, paving the way for a rebound.
Veteran trader TraderSZ echoed these views, sharing weekly and monthly charts for Ethereum, suggesting that an upward breakout could be on the horizon.
Another respected analyst known as Inmortal contributed insights on Ethereum’s possible price trajectory, likening the current ETH behavior to trends observed in Q1 2024. Their analysis suggests that January usually acts as an accumulation phase, while February and March often bring significant price movements. Should ETH mirror such a pattern in 2025, it could potentially reach $5,300.
Will Ethereum’s Rise Spark an Altseason?
While Bitcoin (BTC) experienced soaring prices in 2024, even briefly reaching six figures, Ethereum hasn’t seen similar explosive growth. Its last record high dates back to November 2021, illustrating that it has trailed behind BTC during this current cycle.
Nevertheless, recent developments hint that ETH may be gaining traction against BTC, as shown by the rising ETH/BTC ratio. Additionally, Bitcoin’s dominance might be set for a downturn after various lower highs on the weekly chart have formed.
This shift could herald the well-anticipated altseason, giving a lift to ETH and other altcoins. Currently, ETH stands at $3,576, reflecting a 3.2% increase over the last 24 hours.
All eyes will be on Ethereum—will it manage to breach the $4,000 threshold and further ignite an altcoin rally? Time will tell, but the indicators are starting to look promising!
