Ethereum Weekly RSI Resets: Is A Rebound To $4,000 Imminent?

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As a seasoned crypto investor with over five years of experience in this rollercoaster market, I must say that the current bullish sentiments surrounding Ethereum (ETH) are hard to ignore. Having witnessed countless price fluctuations and cycles, I can confidently state that the technical indicators and fundamental strength hint at a potential surge towards the $4,000 mark.

Last month’s failed attempts to breach the $4,000 resistance were disappointing, but the recent breakout from the symmetrical triangle pattern has me optimistic about ETH’s prospects. The weekly RSI reset, as observed by Cold Blooded Shiller, is a positive sign that may propel Ethereum beyond $4,000 if trading volume continues to increase.

If Ethereum follows the pattern established in Q1 2024, we could be in for an exciting ride towards $5,300. But as always in crypto, strap on your seatbelts and remember: We’re not predicting a moon landing, but more like a trip around the Ethereum blockchain!

Following several weeks of stabilization, Ethereum (ETH) seems to be moving upward beyond its $3,200 to $3,500 trading band. Positive technical signals on the ETH graph, along with improving underlying factors, point towards a promising increase in value for the second-largest cryptocurrency by market capitalization.

Is Ethereum Eyeing $4,000 Target?

In the past month, Ethereum made two attempts to surpass the significant barrier at $4,000 but was unsuccessful on both occasions. During the period from December 16th to December 19th, Ethereum underwent a substantial drop, decreasing from $4,000 down to as low as $3,100 – representing over a 20% decline within just three days.

Over the past few days, Ethereum (ETH) has been moving within a specific price range, oscillating between approximately $3,200 and $3,500. This has raised questions about a possible drop below the $3,000 mark. Yet, today, ETH seems to be gaining strength, escaping from a symmetrical triangle pattern, and the first significant hurdle for further growth appears to be at around $4,000.

Cold-Blooded Shiller, a cryptocurrency trader and analyst, pointed out that Ethereum’s weekly Relative Strength Index (RSI) has been reset, which may offer the impetus to drive ETH prices above $4,000. This analyst also mentioned that if Ethereum manages to break through $3,500, they will consider expanding their holdings of Ethereum in the spot market.

For those who are new to this, a regular RSI reset happens when the Relative Strength Index (RSI), a tool that measures momentum, returns from either overbought or oversold conditions towards its balanced area. This usually suggests that a possible trend reversal or consolidation is taking place. In terms of Ethereum, such a reset might indicate a decrease in selling pressure and an opportunity for recovery.

Experience cryptocurrency investor TraderSZ expressed comparable opinions recently. On platform X, the analyst posted weekly and monthly Ethereum graphs, hinting at the possibility of an upcoming price surge.

A well-known cryptocurrency expert, often referred to as Inmortal, shared insights on Ethereum’s possible future price trend. In their assessment, they drew parallels between the current ETH market behavior and a hypothetical Q1 of 2024, noting several similarities between the two timeframes.

Based on this graph’s pattern, January typically functions as a build-up period, while February and March usually see prices rising rapidly. If Ethereum repeats this trend in 2025, it might reach a goal of $5,300.

Will Ethereum’s Rise Trigger An Altseason?

In the year 2024, Bitcoin soared to unprecedented heights and even reached six figures at one point, but Ethereum hasn’t seen such explosive growth yet. As it stands, the highest price Ethereum has ever reached was in November 2021, suggesting that Ethereum has not kept pace with Bitcoin during this market cycle.

It seems that Ethereum (ETH) could be making progress relative to Bitcoin (BTC), based on the growing ETH/BTC ratio. Moreover, Bitcoin’s dominance might be decreasing, as suggested by the formation of a lower high on its weekly chart, which typically signals a potential shift in market dynamics.

This change might set the stage for the eagerly awaited period of increased altcoin activity (often referred to as ‘altseason’), potentially enhancing the value of ETH and other alternative coins. Currently, ETH is being traded at $3,576, marking a 3.2% increase in its value over the past day.

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2025-01-04 14:41