Ethereum (ETH) has shown signs of a potential uptrend as it broke its silence with a recent price increase, pleasing investors. While Ethereum was quiet, the rise of Solana (SOL) and other altcoins raised questions about ETH’s lack of movement. However, Ethereum’s price action has recently shifted, indicating a possible climb.
Throughout December, Ethereum oscillated between a key support level at $2,147 and a resistance at $2,380, suggesting a consolidation phase. Technical indicators like the Relative Strength Index (RSI) suggest that the leading cryptocurrency could be gearing up for a positive short-term movement.
On the other hand, the SOL market shows signs of potential correction after a prolonged overbought period indicated by a consistently high RSI since October 18. This suggests that Solana may be due for a price adjustment.
After Solana’s notable rise in the fourth quarter, it seems the SOL market is taking a breather, potentially allowing capital to flow back into Ethereum. The price of Ethereum appears ready for an uptick at the expense of Solana.
The RSI’s upward trajectory and the sustained positive zone of the Awesome Oscillator (AO) further support a bullish outlook for Ethereum. If buying pressure strengthens above current levels, Ethereum’s price could rise, potentially converting the $2,420 resistance into a support level before testing the $2,475 range.
In a continued bullish scenario, Ethereum’s price could see a 7% climb from current levels, aiming for the anticipated psychological level of $2,500. However, if the $2,450 resistance persists, Ethereum could lose critical support at $2,147, invalidating the bullish outlook and potentially testing supply barriers as low as $2,049, echoing a move last seen in November. At the time of writing, ETH is trading at $2,417.