Originally published on: October 27, 2024
Ether (ETH) is currently experiencing its first October decline since 2018, with a 5.40% drop to $2,475 as of Oct. 27. The competition from newer smart contract platforms like Solana and lukewarm responses to Ethereum-based ETFs have contributed to this decline. However, despite this, there are indications that Ethereum may be gearing up for a turnaround, potentially reaching $6,000.
One key indicator is that Ether is holding above a critical support level of $2,400, which aligns with the lower trendline of ETH’s multi-month ascending channel pattern. Past trends show that such patterns precede significant price recoveries, including a 160%-plus rebound experienced between October 2023 and March 2024.
Additionally, Ethereum’s weekly relative strength index (RSI) has rebounded from a historical support zone, suggesting a bullish sentiment. Institutional interest in Ethereum is also on the rise, with substantial outflows from Coinbase indicating a shift towards longer-term holding strategies.
Furthermore, technical analysis against Bitcoin suggests that Ether is trading around its all-time ascending trendline support, potentially leading to a sharp price rebound in the near future. The strengthening of ETH against Bitcoin often coincides with the beginning of an “altcoin season,” where alternative cryptocurrencies outperform Bitcoin.
Despite Solana’s recent surge, showing a 900% increase in the SOL/ETH trading pair, the pair’s weekly RSI suggests overvaluation and a possible price correction. This scenario, combined with weakening buying pressure, could lead to a decline in Solana’s price, creating an opportunity for Ethereum to capitalize and push towards the $6,000 target by early 2025.
Overall, the convergence of these factors presents a favorable environment for Ethereum to potentially make a substantial recovery. As always, readers should conduct their research and exercise caution when making investment decisions. Don’t miss out on the latest insights by subscribing to our newsletter for critical updates every Monday.
