Ethereum (ETH) has cemented its upward trend, kicking off the new year with a rise above $2,400. The leading smart contract token pushed its upper leg to $2,432, prompting investors to consider the possibility of reaching $3,000. This bullish momentum has been part of a broader recovery in the cryptocurrency market, with Ethereum showing strong signs of a continued rise.
Crypto analysts, including Rekt Capital X, have suggested that Ethereum, alongside Bitcoin, which recently surpassed $45,000, may have no choice but to recover in the new year. They emphasize that a breakout from the consolidation period is imminent, and the momentum behind ETH’s price is likely to lead to a significant rally soon.
Currently, Ethereum’s price is trading around $2,369, amidst a correction from previous highs. The Relative Strength Index (RSI) indicates that sellers are rapidly gaining ground, with the potential for the path of least resistance to remain downwards unless the short-term support at $2,360 is maintained. If this support holds, Ethereum’s price could reverse the downtrend and continue its ascent towards $3,000. The 20-day Exponential Moving Average (EMA) and the 50-day EMA are positioned to absorb selling pressure in upcoming sessions.
Longer timeframes mirror the slight bullish trend seen in the daily RSI. Experts suggest that Ethereum holders need not worry about short-term fluctuations but should instead focus on potential gains, monitoring the consolidation between the $2,200 support and $2,400 resistance levels.
The 20-day EMA strengthens support at $2,280, while the 50-day EMA continues to provide support at $2,179. If Ethereum’s price surpasses the fundamental $2,000 level, the 200-day EMA will align to prevent losses from reaching the local support at $1,850. A buy signal from the Moving Average Convergence Divergence (MACD) indicator could help solidify the bullish thesis for the cryptocurrency.
In summary, Ethereum is showing resilience in the face of market corrections, with key technical indicators suggesting a potential for significant growth. The support levels established by various EMAs and the MACD signal are providing a foundation for optimism among investors and analysts alike.