Originally published on: October 18, 2024
As Ether gears up for a potential rally above the $3,000 mark, analysts are ringing the alarm bells on red flags that could hinder its breakout.
Recent technical chart patterns indicate that Ether’s price, currently at $2,649.96, may surge past $3,000, with an inverse head-and-shoulder pattern emerging on the daily chart. This pattern is typically seen as a bullish signal marking the end of a downtrend and heralding a price reversal.
There are bullish predictions suggesting that Ether could hit a new all-time high by the first quarter of 2025, potentially reaching $4,000 before the year’s end. However, the cryptocurrency remains in a seven-month downtrend, having dropped over 36% from its peak of $4,111 in March 2024.
This decline has been attributed to Ethereum losing ground in the L1 blockchain innovation space, dampening the enthusiasm for the coin. Some traders are cautious, with technical indicators pointing to a potential correction back to $2,400. The relative strength index (RSI) also suggests looming downside risk, as it currently stands at 59 on the daily chart.
In past instances where the RSI hit the 60 mark, Ether experienced a brief correction lasting six days, with the RSI bottoming at 39 and Ether’s price finding support at $2,309. These indicators have sparked concerns among traders, raising questions about the sustainability of an Ether rally to $3,000 and beyond.
While optimism remains high in the Ethereum community, traders are advised to tread cautiously and stay informed about potential market shifts that could impact the cryptocurrency’s price trajectory. Subscribe to our newsletter for more critical insights and market updates to help refine your trading strategies and spot investment opportunities.