In the volatile cryptocurrency market, while Bitcoin (BTC) has seen fluctuations between $42,500 and $43,800 in the last 24 hours, certain altcoins like SOL Coin have surpassed the $120 mark, and Avalanche (AVAX) is not far from its $50 target. However, Ethereum (ETH), often referred to as the “altcoin king,” has not yet displayed the expected performance, especially after its transition to Proof of Stake (PoS), which was anticipated to boost its growth.
Despite a modest recovery, ETH has maintained its upward trajectory since May, adhering to its support trend line. This is in contrast to other altcoins that have seen tenfold increases in value. Ethereum’s rally gained momentum after a surge that brought its price to a yearly high of $2,403 on December 8, breaking through a 550-day resistance level, marking a significant milestone.
The price area that served as support since April 2021 and turned into resistance in May 2022 has not been fully reclaimed, but investors remain hopeful. Prominent crypto analyst Pentoshi suggests that as we approach the anticipated launch of an ETH ETF in 2024, the market dynamics will shift, with people becoming less inclined to sell and more eager to buy at higher prices, potentially around $3,400.
For ETH, technical indicators such as the Rising RSI and a moderate yet consistent price increase suggest further growth. The RSI is nearing the overbought zone, which historically has been a precursor to significant price hikes for Ethereum.
Ethereum has previously experienced substantial rises ranging between 105% and 340% during similar market cycles, hinting that the price could potentially double in the near future if historical patterns repeat. The most significant resistance level to watch for a potential large rally is at $3,400, and if breached, the all-time high (ATH) region could be within reach shortly.
However, there is a caveat; the current demand for ETH is not meeting expectations, which is critical for sustaining its narrative and price. Conversely, a close below $2,000 could trigger a decline to $1,650, presenting a potential downside risk.
