This year, Ethereum lagged behind several major cryptocurrencies, gaining only 90%. However, in December, ETH broke through a critical resistance zone.
Ethereum has broken above the 550-day resistance
The weekly chart indicates that Ethereum has been growing along an ascending support line since May. The last test of this trendline occurred in October (green marker).
Following the rebound, the rally accelerated, leading to a new yearly high of $2,403 on December 8. A significant moment in this growth was the bullish breakthrough of the 550-day horizontal resistance area.
Previously, this area had served as support since April 2021 and later turned into resistance in May 2022 (red marker).
Cryptocurrency analyst and trader Pentoshi expresses optimism about Ethereum’s prospects in light of the expected ETF launch. As he commented:
“We maintain a bullish bias on $BTC regarding the ETF theme at 25-28k. Soon, we will be able to echo this sentiment with $ETH in 2024. Regardless of what you believe, this is all game theory. As the date approaches, people will be less willing to sell, and others will feel the need to buy. On the radar – $2.7xx and 3.4k.”
ETH Forecast: Indicator Anticipating Rapid Growth
The RSI momentum indicator is rising and is above the neutral mark of 50, indicating a bullish sign.
What’s even more crucial is that this index is almost entering overbought territory. In the previous cycle (green color), it did so three times. Each of these episodes led to a significant upward movement ranging from 105% to 340%.
In the current trend, the nearest resistance area at $3,400 is positioned 55% above Ethereum’s current price, and the historical high is 105% higher.
Despite the bullish forecast, a close of ETH below the horizontal area of $2,000 could trigger a decline of 25% to the ascending support line at $1,650.
