Originally published on: October 27, 2024
Ether, Ethereum’s native token, has experienced a 5.40% decline this October, marking its first monthly loss since 2018. However, despite this setback, indicators are showing that Ether might be gearing up for a recovery towards $6,000.
Currently trading above a crucial support level of $2,400, Ether is showing signs of a potential turnaround. Historical data suggests that when Ether holds above this support level, it precedes significant price rebounds, indicating a possible climb towards $6,000.
Furthermore, Ethereum’s weekly relative strength index (RSI) has rebounded from a historical support zone, reinforcing the bullish outlook for Ether. A surge in Ethereum outflows from Coinbase also suggests growing institutional interest in the cryptocurrency.
These large-scale transfers often signal institutional activity and a shift towards longer-term holding strategies, hinting at a bullish sentiment. Analysts predict that Ethereum’s rise towards $6,000 may also receive a boost from rotations out of its competitors, including Bitcoin and Solana.
Technical analysis shows that Ether is trading around its all-time ascending trendline support against Bitcoin, indicating the potential for a sharp price rebound in the coming months. This trend has historically coincided with the beginning of “altcoin season,” where alternative cryptocurrencies outperform Bitcoin.
While Solana has surged in the trading pair with Ethereum, indicating strength, analysts suggest that it may be overvalued and could face downward pressure. This bearish divergence, coupled with weakening buying pressure, suggests a potential price correction for Solana.
Overall, the convergence of these capital rotations creates a favorable environment for Ethereum to reach the $6,000 target by the end of the year or early 2025. However, readers are reminded that every investment and trading move involves risks, and it’s essential to conduct thorough research before making any decisions.
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