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Ethereum (ETH) Price Positioned to Rise Another 20%, Here’s Why?

The price of Ethereum (ETH) has reached a new yearly high and has not shown any signs of weakness. The upward momentum is likely to continue in the near future.

Weekly Outlook

The Ethereum (ETH) price broke above the long-term resistance zone at $2,050 at the end of November 2023 and maintained above this zone for several weeks thereafter (green arrows). This indicates that the bulls are actively buying on minor dips, expecting the uptrend to continue.

Indeed, the ETH price has surged higher and closed the weekly candle above the local high of $2,720 last week, marking the continuation of the uptrend.

The weekly RSI (Relative Strength Index) has broken above the bearish divergence line (red line) and risen into the overbought area, showing that the bulls have complete control over the market.

Therefore, the ETH price is likely to continue rising towards the long-term resistance zone at $3,500, which is more than 20.22% higher than the current price.

ETH/USDT weekly chart . Source: TradingView

Short-Term Breakout

The daily chart supports the bullish outlook from the weekly time frame as ETH has broken above the horizontal resistance zone at $2,720 and confirmed it as support on February 17, 2024 (green arrow).

The daily RSI has also entered the overbought area and has not created any bearish divergence.

Thus, the uptrend is expected to continue soon.

ETH/USDT daily chart . Source: TradingView

Conclusion

The most likely prospect indicates that the price of ETH will continue to rise towards the long-term resistance zone at $3,500.

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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