Originally published on: November 08, 2024
Ether (ETH) has experienced a significant upturn in 2024, surging by 21% in three days following the announcement of President-elect Donald Trump’s victory in the US presidential election. This rally propelled the altcoin above the $2,800 overhead resistance, breaking a consolidation range that had persisted for 96 days.
Anticipation of a new bullish trend is high within the crypto community, with Ether signaling a strong buy based on a historical setup from 2023.
In 2023, Ethereum underwent a downtrend throughout Q2 and Q4, followed by an accumulation phase in Q3 and early Q4. A breakout from this accumulation range, coupled with a breach of the descending resistance trendline, signaled a trend reversal.
Ether also recorded collective daily closes above the 50-day, 100-day, and 200-day EMA levels, leading to a 129% rally by the end of Q1 2024, peaking at $4,100.
Currently, Ether mirrors the bullish setup observed in 2023, with a similar downtrend in Q2 to Q4 and an extended accumulation phase in Q3. Recent days have seen ETH break above the descending trendline and exit the accumulation range, securing daily closes above key EMA levels.
If history repeats itself, Ethereum could potentially reach a price range between $6,000 and $6,500 by Q1 2025.
As institutional investors continue to accumulate Bitcoin, smart money is now showing renewed interest in Ethereum, as evidenced by significant inflows into Ethereum ETFs.
Venture capitalist Henrique Centieiro suggests that Ethereum is entering a scarcity mode, driven by a supply shortage and increasing demand, setting the stage for a remarkable rally in the altcoin.
With over 42.6% of ETH locked in staking contracts and exchange reserves at record lows, investors are poised to reap substantial rewards from Ethereum in the long run.
Disclaimer: This article does not offer investment advice. Readers are encouraged to conduct their own research before making investment decisions.
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