Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is showing strong bullish signals, with long-term targets a price of $4,811.71 and $8,550.
The cryptocurrency recently broke out of a long-term resistance trendline in late 2022, marking a pivotal shift in its price trajectory.
This breakout led to a sharp rally of approximately 234%, demonstrating Ethereum’s strength in the market.
Currently, Ethereum is consolidating above key support levels after a minor pullback, with analysts predicting further upside potential.
A healthy retracement after the initial rally has allowed ETH to stabilize, laying the groundwork for its next major move toward the projected targets.
Key Breakout and Rally Since Late 2022
In December of 2022, Ethereum finally disposed of a significant bear market structure by breaking through a key trendline resistance.
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This breakout indicated the change of the trend, as previous resistances now have acted as strong supports.
This change in the trend meant that the price of Ethereum per coin rose to more than 234% in just a few months.
This breakout also brought Ethereum near a critical technical level of $4,811.71.
The analysts have provided their insight saying that the breakout confirmed the strength of Ethereum especially considering that it trades above crucial levels.
The cryptocurrency is now set for another rally given the increasing demand in the market as well as positive technical signals.
Pull back and Technical Support at $4,811.71
Ethereum had a significant rebound, but then it retraced, something that experts believe is a normal dip in the upward trend.
The pullback has given the cryptocurrency some time to consolidate near key support levels, which should help it for a potential future rally.
At the moment, Ethereum is priced at around $3,294 and is still holding above the key $3,000 mark.
Another resistance level that Ethereum needs to breach is $4,811.71, which means a 47% surge from the current price.
Traders are closely watching how the cryptocurrency can overcome the resistance levels at around $3,350. If successful, it will give Ethereum the push it needs to achieve its next level.
Ethereum Price Long Term Forecast Stands at $8,550
Another target for Ethereum is $8,550. This is quite a way from the breakout point in 2022 for a potential gain of $4,811.71.
This long-term target is arrived at due to Ethereum’s continued bullish trend and as more people adopt the cryptocurrency.
Such a move to $8,550 would translate into a 2.61x increase following the breakout which is typical of the Ethereum market in bullish trends.
Other analysts have pointed to Ethereum’s fundamental strength with buyers continuing to defend crucial levels.
This phase has strengthened the long-term bullish outlook of the cryptocurrency as the technical analysis suggested more upside.
The higher lows on Ethereum’s chart also strengthen the bullish outlook for the currency.
Current Ethereum Price Action and RSI Momentum
Analyzing the 4-hour chart of Ethereum, we see that price is bouncing back from recent lows and forms an ascending triangle pattern on the chart.
The first major area of pullback is at $3,350 as it had been the immediate support level before.
A further surge beyond this level may see Ethereum hit $4,200, and any further strength could see the cryptocurrency climb to $4,500.
RSI is at 42, which can be labeled as neutral to slightly bearish. However, the RSI is coming off oversold levels and therefore, it is likely that the price may rise further.
In the coming weeks, traders may see higher price targets if Ethereum is to sustain its current trend.
