Ethereum Struggles to Maintain $2,000 Amid Market Uncertainty

• Ethereum (ETH) Price Analysis: What Does the Future Hold?
• Ethereum Stumbles Before Reaching Yearly High
• The Role of RSI
• What Do the Analysts Say?
• ETH Price Forecast: Will It Remain Above $2,000?
• Profitability in a Bear Market
• Disclaimer

Ethereum (ETH) Price Analysis: What Does the Future Hold?

Despite experiencing a dip after failing to hit a new yearly high on November 24, the price of Ethereum$2,315 -2.42% (ETH) has managed to stay above the $2,000 mark. The question on everyone's mind is whether it will rally back to attempt a new high or if further dips lie in wait.

Ethereum Stumbles Before Reaching Yearly High

Analyzing the daily timeframe reveals that Ethereum embarked on an upward trajectory in October, breaking free from a descending resistance trend line that had held it captive since it reached a yearly high of $2,140 on April 16. The ETH price has yet to return to this trend line for revalidation as support. As Ethereum neared its yearly peak, it fell short, instead forming a lower high and a long upper wick on November 24, which is typically interpreted as an indicator of selling pressure.

The Role of RSI

The Relative Strength Index (RSI) is a well-known momentum indicator that traders utilize to ascertain if a market is overbought or oversold, assisting them in deciding whether to buy or sell an asset. If the RSI reading exceeds 50 and the trend is upward, it bodes well for the bulls. Conversely, if the reading is below 50, the bears hold the advantage. Currently, the RSI is giving mixed signals - it's falling and has hit 50, but it has also produced a hidden bullish divergence, a sign of potential trend continuation.

What Do the Analysts Say?

The future price of ETH remains a contentious topic among cryptocurrency traders and analysts. For instance, ColdBloodShill anticipates that the price could revisit the $1,900-$2,000 region before returning to its former bullish course. On the flip side, Satoshi Flipper is fundamentally bullish, citing an influx of institutional capital into Ethereum upon the launch of spot ETFs as a positive driver for the ETH price. Lastly, CryptoBusy points out the long-term resistance at $2,100, predicting that a price break through this level could trigger a significant increase.

ETH Price Forecast: Will It Remain Above $2,000?

In their quest to identify recurring long-term price patterns and investor psychology, technical analysts often employ the Elliott Wave theory to determine trend direction. The most plausible wave count indicates that the ETH price is in the C wave of an A-B-C correction (black) that follows a five-wave increase originating from October. Assigning a 1:1 ratio to waves A:C yields a low of $1,900, which aligns with the 0.382 Fibonacci retracement support level.

If wave C extends to 1.61 times the length of wave A, ETH could tumble to a low of $1,760, marking a 13% decrease from its current value. This secondary target correspondingly meets the 0.618 Fibonacci retracement support level. However, if the ETH price surpasses the wave B high of $2,136, the correction phase will be over, and ETH could experience a 25% surge, potentially hitting the next resistance at $2,500.

Profitability in a Bear Market

Investors seeking profitability can explore strategies for making money in a bear market. Always remember to conduct thorough research and seek professional advice before making any financial decisions.

Disclaimer

This price analysis article is meant solely for informational purposes and should not be construed as financial or investment advice. Market conditions may change without any prior notice. Always carry out independent research and consult a professional before making any financial decisions.

Edited by Jonathan Stoker