Ethereum Price Prediction: Will Ascending Triangle Momentum Propel ETH to $3,400?
Ethereum price prediction: ETH has recently outperformed Bitcoin, marking a significant 14% increase within a fortnight. The cryptocurrency recently surpassed the $2,500 mark, a first since May 2022. This breakthrough, fueled by robust fundamentals and growing optimistic market sentiment, sets the stage for Ethereum’s potential climb to the $3,400 level.
Ethereum’s Bullish Trajectory and Market Optimism
After reaching a multi-week high near $2,716, Ethereum price experienced a slight correction, dipping below $2,600 and $2,550. Despite this, the overall momentum remains bullish. Last week’s ETF approval contributed to a surge in Ethereum’s price, maintaining it above the $2,500 threshold. This upward trend presents a promising outlook for Ethereum’s near-term price increase.
Source: Tradingview
Ethereum price is currently hovering around $2,514, showcasing an impressive gain of over 64% in the past year and a 10% increase in the last month. Despite a minor 1% decrease in the past day, this significant growth suggests a predominantly positive sentiment towards Ethereum. It positions the cryptocurrency as a viable option for both long and short-term investment strategies.
Ethereum Technical Analysis and Price Movements
A cryptocurrency analyst, Ali, recently highlighted Ethereum’s breakout from an ascending triangle on the weekly chart. Despite short-term market fluctuations, Ethereum’s price aims for the $3,400 target. Ali predicts a potential bullish run in the upcoming days.
Remember that #Ethereum broke out from an ascending triangle on the weekly chart. Despite the short-term volatility, $ETH continues to target $3,400! pic.twitter.com/kQ2ncLuFjL
— Ali (@ali_charts) January 14, 2024
The next major resistance level for Ethereum lies near $2,600. A decisive move above this level could propel Ethereum towards the $3,000 mark and potentially even higher towards the $3,400 zone. Conversely, failure to surpass the $2,500 resistance might lead to a downward trend. The initial support level is around $2,440, with further declines potentially testing the $2,300 support.
The daily Moving Average Convergence Divergence (MACD) indicates bullish momentum, with a positive crossover observed on the daily chart. The Relative Strength Index (RSI) has risen above 50, entering a neutral zone. This suggests a strong buying interest but hints at the possibility of a short-term correction. Additionally, the 20-EMA currently stands above the 50-EMA, indicating ongoing bullish pressure.
ETH/USD daily price chart, Source: Tradingview
The Awesome Indicator highlights a bullish trend, overcoming a slight dip as the latest up-candle engulfs the prior down-candle. This suggests strong upward momentum. Additionally, the Chaikin Money Flow Indicator, at 0.06, confirms a positive market sentiment, indicating a flow of capital into the market, a sign of investor confidence.
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