Alright, folks, let’s talk about Ethereum’s rollercoaster ride. At the start of 2024, ETH was riding high, hitting levels not seen since May 2022. But as fate would have it, the party didn’t last, and the value took a tumble after January 12.
Ethereum’s Slippery Slope
Checking out the technical analysis on the weekly timeline, ETH has been following an ascending support trend line since July, giving it a boost in October 2023. Riding this wave, the price broke out from a horizontal area in November, which had been both support and resistance for almost 1,000 days, with just a tiny hiccup in April.
After reaching a peak of $2,717 on January 11, 2024, the value has taken a nosedive, forming a not-so-friendly bearish candlestick on the weekly chart.
RSI Signals Trouble
Taking a peek at the weekly Relative Strength Index (RSI), it’s sounding the bearish alarm. This nifty indicator helps traders figure out if a market is overbought or oversold. When RSI is above 50 and trending up, it’s party time for the bulls. But, if it’s below 50, it’s a different story. The RSI is currently on a downward spiral, signaling a bearish divergence, where a drop in momentum accompanies a price increase, often hinting at a trend reversal.
What the Experts are Saying
Now, let’s hear from the crypto pundits. InmortalCrypto predicts a short-term dip for ETH, followed by a significant rebound. Meanwhile, CryptoMichNL sees ETH gaining ground against Bitcoin, citing factors like Bitcoin bottoming out, Ethereum Spot ETF hype, and new upgrades aiming to cut costs by 90%. On the flip side, CredibleCrypto is the party pooper, foreseeing more pain for the ETH/BTC pair.
Will the Support Stand Strong?
Zooming into the daily timeline, things look a bit bearish with the price action and RSI trends. On January 23, ETH broke free from a 95-day love affair with an ascending support trend line, and the daily RSI confirmed the breakup by dipping below 50.
Currently hovering around the $2,200 support zone, ETH faces a crossroads. A breakdown could mean an 11% drop to $1,980, but hey, a strong bounce at $2,200 might just spark a 7% comeback to the $2,400 support line.
So, buckle up, ETH enthusiasts. The ride might get a bit bumpy, but remember, the crypto world is full of surprises, and anything can happen. Stay tuned for the next chapter in Ethereum’s wild journey!
And hey, just a friendly reminder, this crypto gossip is for your entertainment only. Don’t go making any big financial moves without consulting the wizards of finance and doing your own homework. Cheers!
