Originally published on: December 07, 2024
Ethereum’s Ether token seems to be following in the footsteps of XRP’s impressive November breakout, which resulted in a price surge of over 390%.
In a similar fashion to XRP, Ethereum has broken out of a symmetrical triangle pattern that has been forming over the past three years. This breakout could potentially lead Ether to reach the 1.618 Fibonacci retracement level at around $7,636, signaling a possible 90% rally by December 2024 or January 2025.
Analyzing Ethereum’s weekly relative strength index (RSI), currently standing at around 67, suggests that there is still room for further growth before hitting the overbought threshold. This indicator was at a similar level before XRP’s price explosion.
Market analyst “VentureFounder” predicts an “impulse breakout” for Ethereum in the coming months, drawing parallels between its current setup and the 2016-2017 cycle. The analyst has set a price target of $15,937 for Ethereum by May 2025, potentially pushing its market cap above $1 trillion for the first time.
To support this bullish scenario, maintaining the $3,800 level as weekly support will be crucial for Ethereum. Holding this level would increase the chances of retesting its all-time high of $4,878 in the near future, with further potential upside to come.
The positive sentiment around Ethereum is also reflected in the increasing inflows into US-based spot Ethereum exchange-traded funds (ETFs). As of December 6, these funds held approximately $1.42 billion worth of Ether under management, a significant jump from $123 million on November 22.
As always, it’s important to remember that all investment and trading decisions carry risks, and it’s essential to conduct your own research before making any decisions.
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