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After weeks of consolidation, Ethereum (ETH) appears to be shooting higher from its $3,200 to $3,500 trading range. Bullish technical indicators on the ETH chart, coupled with… strengthening Fundamentals point to significant upside potential for the second-largest cryptocurrency by market cap.
Is Ethereum Eyeing $4,000 Target?
Last month, Ethereum attempted to break the critical $4,000 resistance level twice but failed on both occasions. Between December 16 and 19, Ethereum saw a sharp decline, falling from $4,000 to $3,100 – a drop of more than 20% in the space of three days.
Since December 19, Ethereum has remained within a range, ranging between $3,200 and $3,500, raising concerns about a possible drop below the $3,000 level. However, ETH is showing signs of a rebound today, breaking out of the symmetrical triangle pattern, with $4,000 emerging as the first major resistance level to overcome.
Cryptocurrency trader and analyst Cold Blooded Shiller male Ethereum’s weekly relative strength index (RSI) has reset, which could provide the momentum needed to push ETH beyond $4,000. The analyst added that if ETH exceeds $3,500, they plan to increase their spot holdings.
For starters, a weekly RSI reset occurs when the RSI, a momentum indicator, moves from overbought or oversold levels toward its neutral zone, typically indicating that a potential trend reversal or consolidation is underway. In the context of Ethereum, this reset may indicate reduced selling pressure and an opportunity for a bounce.
Veteran cryptocurrency trader TraderSZ echoed similar sentiments. In a post on X, the analyst shared the weekly and monthly charts for Ethereum, suggesting that an upward breakout could be imminent.
Another prominent cryptocurrency analyst, known as Inmortal, evaluated the potential price path of Ethereum. In their analysis, Inmortal compared ETH’s current price action to Q1 2024, highlighting the similarities between the two periods.
According to the following chart, January often acts as an accumulation phase, while February and March tend to experience equivalent price movements. If ETH follows a similar pattern in 2025, it could target $5,300.
Will Ethereum’s Rise Trigger Altseason?
While Bitcoin (BTC) saw unprecedented price spikes in 2024 – briefly reaching six-figure territory – Ethereum has yet to see similarly explosive growth. The current high of ETH (ATH) dates back to November 2021, confirmation ETH has lagged behind BTC during this cycle.
However, recent market trends suggest that ETH might as well finally It is gaining more strength against BTC, as evidenced by the steady increase in the ETH/BTC ratio. In addition, it shows the dominance of Bitcoin ready To decline after forming a lower high on the weekly chart.
This shift could pave the way for the long-awaited altcoin season, providing a boost to ETH and other altcoins. At press time, Ethereum is trading at $3,576, up 3.2% over the past 24 hours.
Featured image from Unsplash.com, charts from X and TradingView.com
