Ethereum (ETH), a leading smart contract platform, has seen a modest 90% price increase since its dip to $881 in June 2022, struggling to break out of its higher range except for a deviation in April 2023. The significance of this breakout is due to the region acting as intermittent support and resistance since 2021. Despite ETH’s price rise in November, there was no significant acceleration.
The Relative Strength Index (RSI), a momentum indicator used to assess overbought or oversold conditions and potential accumulation or distribution of a token, shows readings above 50 and an uptrend indicating a bullish advantage, while below 50 suggests the opposite. Previous cycles of RSI moving towards the overbought region were catalysts for accelerated upward movements.
Crypto analysts, despite Ethereum’s underperformance to date, remain optimistic about its future. Trader Mayne believes ETH will soon start closing the gap, suggesting that after Bitcoin (BTC) reaches $48-50k and then disperses, ETH will rise to $3400, facing its betas, marking a time to start mocking.
CryptoMichNL predicts ETH will soon bottom out against BTC, noting that the first quarter has mostly been bullish for the pair. CrediBULL Crypto sees a short-term uptrend, expecting the price to soon create a higher low and accelerate its rise. Ethereum’s dominance is below the long-term support level of 17%, which has served as resistance and support since 2021, excluding the June deviation, marking its critical importance. While the price has dipped slightly below the support zone, it has not yet closed a week under this level.
Experts suggest that despite Ethereum’s struggles, there is room for growth and a potential uptrend, with key indicators and historical patterns providing a basis for their optimism.