The price of Ethereum (ETH) continues to explode towards $3,000?


January 12, 2024 11:14 UTC+1
| 5 min read

The price of Ethereum (ETH) has finally started an upward movement this week. But what a movement! While the price of the token fell below $200 on January 7, it has since jumped 20%, to reach a high over the last 620 days. While the crypto market is in great shape and the news is good, the question arises: can this bullish move take ETH price to $3,000, or will the rise soon stop? Decryption.

All hopes are allowed for ETH

It should still be remembered that the second crypto in terms of market capitalization had a solid year in 2023, experiencing a regular increase, proof of a stability that it demonstrates a little more every day. ETH ended the year around $2,200. After a sudden fall on January 3 followed by stagnation, January 7 is therefore the day when the rise began.

If we look at the graph below, we see that the price of ETH has increased gradually since May 2022. Over this period, the token has traded below a resistance zone of $2,410 and an ascending resistance trendline. This area is critical because it is both a horizontal retracement resistance level and the 0.382 Fibonacci.

After 4 failed attempts (represented by the red icons), the price of the token finally suddenly broke through this resistance this week, to peak at $2,689. A breakout that breaks a trend line that has been in place for over 600 days.

The Weekly Relative Strength Index (RSI) validates this bullish hypothesis. As a reminder, traders use the RSI as a momentum indicator to identify overbought or oversold conditions for an asset. Readings above 50 and an upward trend indicate that the bulls have an advantage, while readings below 50 suggest the opposite. The RSI, represented in the chart by the green icon, has also increased into overbought territory. During the previous cycle, this preceded an increase to a record high.

If the increase in ETH continues, which many forecasts indicate, the next resistance zone will then be between $3,340 and $3,500, either 35% above current price.

Be careful, despite this accumulation of positive indices concerning the price of ETH, a weekly close below the ascending resistance trendline will then invalidate the breakout. The price of the token could then fall by 25% and would then fall to the nearest support, located around $2,000. As always in cryptos, you must remain vigilant. However, the news (for once in a long time) also seems to validate this euphoria.

Positive external phenomena to come?

As for analysts, we can say that optimism is in order, or even more so for some. For Manuel Valente, scientific director of Coinhouse, Wednesday’s approval of the Bitcoin Spot ETF by the SEC in the USA could lead to a rise in the price of ETH. Waiting for the authorization of Ethereum ETFs, which now seems more and more likely. Especially since, as a reminder, traditional finance behemoths are in the game. Giants like Blackrock, whose CEO Larry Fink has just officially supported the authorization of such a fund. 2 good news, 2 potential price increases if they materialize.

Michaël Van De Poppe, for his part, shared on X a graph representing the evolution of the prices of ETH in relation to Bitcoin. A graph which makes him predict that a Approval of Ethereum ETFs will lead to a 100% rise in ETH against the cryptocurrencye. All the lights seem to be green for ETH, but investors are also interested in this token.

The Launchpad XYZ pre-sale craze

Crypto project integrating Artificial Intelligence, Launchpad XYZ has already managed to raise more than $2.5 million during its pre-sale. As a reminder, the project integrates AI to improve trading strategies, portfolio management and risk analysis. The platform aims to offer professionals in the sector all the tools they need. But also provides training for all traders, regardless of their experience levels, in order to improve.

The platform allows you to acquire the LPX, native token, at an attractive price of 0.0445 $USDT. A token that can be paid with ETH, USDT, BNB, as well as by credit card. Payment flexibility, combined with additional bonus of 3%which makes LPX a unique opportunity.

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This article does not constitute investment advice in any way. The information provided here should not be used as a basis for making financial decisions. Cryptocurrency investments involve risks and may result in significant losses. You should only invest what you can afford to lose and carry out your own research before making any investment decisions.





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