Ethereum (ETH) Price Holds Above Previous Resistance, Is $3,500 In Sight?
The Ethereum (ETH) price has held steady above the previous long-term resistance zone but shows short-term signs of weakness. Is this enough to neutralize the uptrend?
The Ethereum (ETH) price has risen since establishing a higher low in the week of October 16 to 22, 2023 (green arrow). This move helped the price break above the long-term resistance zone at $2,050 and reach a new yearly high at $2,720.
The ETH price has maintained above the $2,050 zone since the breakout occurred. This is a very positive sign, indicating that the bulls are actively buying on minor dips as they anticipate another rally.
The weekly RSI indicator has created a significant bullish divergence (blue line) and is above 50, supporting the continuation of the uptrend.
Therefore, the ETH price could potentially rise by 41.98% to the next resistance zone at $3,500.
The 4-hour chart shows that the ETH price has broken above the short-term horizontal resistance zone at $2,420, signaling the end of the correction phase from the yearly high.
However, the 4-hour RSI indicator has formed a bearish divergence and is sloping downwards, indicating weakening upward momentum.
Therefore, the ETH price may retest the $2,420 zone before rising to the yearly high at $2,720.
The most likely scenario suggests that the ETH price will continue to rise in the near future. The immediate target is $2,720, with further potential to reach $3,500.
However, it may experience a retracement to the $2,420 zone before doing so.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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