Key Takeaways
- Ethereum (ETH) price has surged significantly since October 19, validating a long-term ascending support trendline.
- Weekly and daily Relative Strength Index (RSI) indicators show bullish signs, confirming the upward trend.
- Despite the bullish ETH price prediction, a rejection from the descending resistance trendline could trigger a significant retracement to support levels.
Ethereum's Rally Validates Long-Term Support Trendline
Since October 19, Ethereum's price has experienced a substantial uptrend, peaking at $1,854. This upward movement confirmed a long-term ascending support trendline and brought the price to a descending resistance trendline. The critical question now is: Will Ethereum break out?
Ethereum Bounces from 500-Day Ascending Support Trendline
The weekly chart reveals that Ethereum's price has been climbing along an ascending support trendline since its June 2022 low of $882. This trendline has consistently defined the slope of the uptrend.
In October, ETH price rebounded from this trendline and formed a bullish engulfing candlestick (green icon) the following week. This pattern, where a period's losses are entirely offset by gains in the next period, is a strong bullish signal.
The last time this pattern appeared was in July 2021 (black icon), preceding November's all-time high of $4,868.
The weekly RSI further supports the bullish outlook. As a momentum indicator, the RSI helps traders gauge whether the market is overbought or oversold. Readings above 50 favor the bulls, while those below 50 indicate bearish dominance.
Currently, the RSI is rising and has just crossed above 50 (green circle), signaling growing bullish momentum.
Whales Continue Accumulating Ethereum
On-chain data underscores strong bullish sentiment, particularly evident in whale activity.
Earlier today, two whales withdrew 39,450 ETH (worth ~$68 million) from Coinbase. Shortly after, another whale extracted an additional $15 million worth of ETH. In total, $83 million in ETH was removed from centralized exchanges within 24 hours.
Such large-scale movements often lead to supply shocks—where demand outstrips available liquidity—potentially driving prices higher.
This scenario could intensify if 0xSifu (former CFO of Frog Nation) faces liquidation. His account holds over $21 million in Synthetix perpetual ETH short positions. A price rise to $1,926 could trigger his liquidation.
Price Prediction: Is Ethereum's Yearly High the Next Target?
Daily technical analysis aligns with the bullish weekly outlook. The daily RSI (green) recently displayed a prolonged bullish divergence—a scenario where momentum rises despite price declines, often preceding trend reversals.
Today, ETH price reached the descending resistance trendline that has capped gains since Ethereum's yearly peak. A breakout would confirm a bullish trend reversal, potentially pushing prices toward the $2,000 resistance zone (10% above current levels)—just shy of the yearly high of $2,141.
Prominent trader Crypto Tony believes ETH will hit this target if the breakout sustains.
However, a rejection at the resistance trendline could lead to a 5% drop to the nearest horizontal support at $1,750.
Frequently Asked Questions (FAQ)
1. What caused Ethereum's recent price surge?
Ethereum's rally stemmed from a rebound off its long-term ascending support trendline, coupled with bullish RSI signals and aggressive whale accumulation.
2. How high can ETH go if the breakout continues?
A sustained breakout could propel ETH toward $2,000, near its yearly high of $2,141.
3. What risks could reverse ETH's uptrend?
A rejection at the descending resistance trendline may trigger a 5% retracement to $1,750 support.
4. Why are whales accumulating ETH?
Large withdrawals from exchanges reduce available supply, creating potential supply shocks that drive prices higher.
5. How does RSI indicate bullish momentum?
RSI readings above 50 (especially with upward trends) suggest growing bullish dominance in the market.
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This analysis combines technical indicators, on-chain data, and market sentiment to provide a comprehensive ETH outlook. Always conduct independent research before investing.
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