Ethereum (ETH) is back above the 4,000 USD level, closing in on its current all-time high (ATH) of 4,878 USD. Up over 7% on a weekly basis, according to CoinGecko, ETH recently hit its highest level since March.
As such, traders and investors are wondering whether the world’s second-largest cryptocurrency will continue to rise towards a new record price in 2024. Check out what technical analysis has to say on the subject below.
Can Ethereum Still Have a Historic 2024?
Ethereum, which was trading at 2,300 USD in early January, has gained 75% year-to-date.
However, at no point did the cryptocurrency come close to registering a new ATH – unlike Bitcoin (BTC), which renewed its all-time high several times throughout the year.
In this sense, not even the approval of cryptocurrency ETFs in the United States seems to have been able to start a strong bull run. As a result, ETH ended up losing prominence to other altcoins, such as Solana (SOL).
However, the year is not over yet. Currently 18% below its all-time high, Ethereum still has time to reach a new ATH in 2024. However, historical analysis shows that there is little chance of this happening.
In 2023, for example, the price of cryptocurrency fluctuated only 10% in the last two weeks of the year. The previous year, volatility was even lower during this period, at just 5%. Something similar happened in 2021.
It is worth noting that this is common in the crypto market, which becomes less volatile during the holiday season.
Technical analysis shows potential, but also difficulties
The daily chart of the ETH/USDT pair shows that the world’s second-largest cryptocurrency began its current upward movement on November 7, when it managed to break above a consolidation pattern that had been in place since early August.
It is worth noting that the moving average crossover anticipated this breakout, with the 9-day EMA (blue) crossing above the 21-day EMA (orange).
Since then, Ethereum has been forming higher and higher highs and lows, which has resulted in a bullish wedge pattern. Currently, its price is near the middle of the channel, with both EMAs acting as support.
To register a new ATH, a breakout above the chart pattern will be necessary. Although this scenario cannot be ruled out, given that the current trend is upward, some technical indicators show that buyers will have to make a great effort to achieve this.
First, the Relative Strength Index (RSI) is close to the 70 threshold. If it breaks above this level before confirming a breakout, it would indicate that the asset has entered an overbought state.
Furthermore, ETH is close to the Bollinger Bands resistance at 4,120 USD. Therefore, the likely scenario for the rest of the year is for the asset to start a consolidation near the 4,000 USD level or fall again to test the wedge support at 3,750 USD.
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