Analysts predict Ethereum will reach new highs

on January 12, Ethereum reached a local high of $ 2720 and started to decline. Currently, ETH has been trading in a horizontal range for 61 days. Cryptocurrency analysts have predicted whether the asset has a chance of a breakout.

The weekly timeframe shows that ethereum has been growing since June 2022. During this time, it has formed three rising lows (green icons), each of which accelerated further price growth.

Ethereum’s growth culminated in a high of $ 2720 in January 2024. It is above the Fibonacci level of 0.382 and the horizontal resistance area. However, after that, the asset’s price fell below this area, making the previous breakout false.

The weekly relative strength index is leaning toward bearish sentiment. Although the indicator is above the neutral 50 mark, it has already begun to decline. In addition, the RSI has formed a bearish divergence (red), which often precedes downward movements.

Cryptocurrency analysts and traders are not sure about the future trend of ETH. For example, CryptoMichNL suggests that as long as the price stays above $ 2150, ETH will grow towards $ 3000. He also believes that ethereum will outperform bitcoin due to the rollout of the Dencun update.

«The Dencun update will take place on the final test network within a few days. It will most likely affect the price of Ethereum.»

XForceGlobal uses the Elliott Wave Theory for its analysis and identifies two possible scenarios for the future trend, both bullish and bearish. CryptoGodJohn suggests that the price will initially fall, but then rebound.