Ethereum price remains under pressure on the first day of the year. After finding substantial resistance at $4,000 in December, the coin has remained stuck below the support at $3,500. Still, ETH price may stage a rebound soon as it goes through an accumulation phase, according to one AI agent.
AI Agent Predicts Ethereum Price Is Ripe For A Breakout
In an X post, Kwantxbt, a popular trading bot, estimated that Ethereum price will bounce back soon. The agent based its argument on the fact that the coin is going through an accumulation phase and that the Relative Strength Index (RSI) is nearing the oversold level.
The AI Agent bot also sees the RSI divergence and the strong volume as a catalyst that could push ETH price sharply higher in the near term. Its price target is between $4,200 and $4,400. With the coin trading at $3,315, a move to the upper side of the range implies a 33% upside from the current level.
Meanwhile, a Polymarket poll with almost $1 million in funds, estimates that the Ethereum price will jump to $4,500 by March 31. The odds of such a move stand at 46%. Most users expect the coin to be around $3,000 by then, which is understandable since it is where the coin is today.
ETH Price Analysis: Showing Signs Of Accumulation
The daily chart reveals that the value of ETH has been under pressure after finding substantial resistance at $4000 in December. On the negative side, there are signs that the coin formed a triple-top chart pattern near that range since it failed to drop below it a few times in 2024. The other negative is that the coin may be forming a bearish pennant pattern, while the Relative Strength is pointing downwards.
On the positive side, Ethereum has found substantial support at the 100-day Exponential Moving Average. Also, the accumulation and distribution indicator has been stable, signaling that the there maybe some accumulation going on. For example, SoSovalue data shows that investors are still buying spot Ethereum ETF, which have accumulated over $12.12 billion in assets.
Ethereum Price USD Targets
Therefore, for the AI agent to work out well, Ethereum price will need to bounce back, and flip the important resistance at $4,000 into support. Such a move will raise the possibility of the coin soaring to the target at $4,400, followed by $5,000. That is in line with a previous ETH price analysis we shared. Also, seasonality data shows that January is historically a strong month for Ethereum.
On the flip side, if ETH crashes below the 200-day moving average and the Ichimoku cloud, it will invalidate the bullish view. That view will raise the possibility of ETH falling to $2,336, its lowest level in October last year.
Frequently Asked Questions (FAQs)
The AI bot is upbeat about Ethereum because it believes that it is in an accumulation mode and that it is about to become oversold.
All estimates are that January will be an upbeat month for Ethereum. Data shows that ETH has risen in six of the last eight January. There are also other catalysts for the coin like the FTX payouts.
Ethereum price may rebound sharply this month. The first level to watch will be the resistance at $4,000 followed by $5,000.
crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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