After weeks of consolidation, Ethereum (ETH) appears to be breaking out to the upside from its $3,200 to $3,500 trading range. Bullish technical indicators on the ETH chart, coupled with strengthening fundamentals, suggest significant upside potential for the second-largest cryptocurrency by market cap.
Is Ethereum Eyeing $4,000 Target?
Last month, Ethereum attempted to breach the critical $4,000 resistance level twice but failed on both occasions. Between December 16 and December 19, ETH experienced a steep decline, falling from $4,000 to as low as $3,100 – a drop of more than 20% within three days.
Since December 19, ETH has remained range-bound, fluctuating between $3,200 and $3,500, sparking concerns about a potential decline below the $3,000 level. However, ETH is showing signs of resurgence today, breaking out of a symmetrical triangle pattern, with $4,000 emerging as the first major resistance level to overcome.
Crypto trader and analyst Cold Blooded Shiller noted that Ethereum’s weekly Relative Strength Index (RSI) has reset, which could provide the momentum necessary to push ETH beyond $4,000. The analyst added that if ETH surpasses $3,500, they plan to increase their spot holdings.
For the uninitiated, a weekly RSI reset occurs when the RSI, a momentum indicator, moves back from overbought or oversold levels toward its neutral zone, typically indicating that a potential trend reversal or consolidation is underway. In Ethereum’s context, this reset could signal reduced selling pressure and an opportunity for a rebound.
Seasoned crypto trader TraderSZ echoed similar sentiments. In a post on X, the analyst shared weekly and monthly Ethereum charts, suggesting that an upside breakout may be imminent.
Another prominent cryptocurrency analyst, known as Inmortal, weighed in on Ethereum’s potential price trajectory. In their analysis, Inmortal compared the current ETH price action to Q1 2024, highlighting similarities between the two periods.
According to the following chart, January often serves as an accumulation phase, while February and March tend to experience parabolic price movements. If ETH follows a similar pattern in 2025, it could target $5,300.
Will Ethereum’s Rise Trigger An Altseason?
While Bitcoin (BTC) witnessed unprecedented price surges in 2024 – briefly touching six-figure territory – Ethereum has not yet experienced comparable explosive growth. ETH’s current all-time high (ATH) dates back to November 2021, underscoring that ETH has lagged behind BTC during this cycle.
However, recent market trends indicate that ETH may finally be gaining ground against BTC, as evidenced by the steadily increasing ETH/BTC ratio. Additionally, Bitcoin dominance appears poised for a decline after forming a lower high on the weekly chart.Â
This shift could pave the way for the much-anticipated altseason, providing a boost for ETH and other altcoins. At press time, ETH trades at $3,576, up 3.2% in the past 24 hours.
Featured Image from Unsplash.com, Charts from X and TradingView.com
