Ethereum (ETH) could be on the verge of a substantial price increase, with some analysts predicting that it might surpass $3,000 by September 2024. This is backed by data from Coin Checkup indicating that Ethereum could surge by 51% in the next few months.
Although the cryptocurrency has recently faced some downturn in price, this could be a short-lived trend before the upcoming surge. Moreover, at press time, ETH price was trading at $2,662, a 3% surge from the intra-day low.
Popular Crypto Analyst Michaël van de Poppe has shared his ETH price action analysis and seems bullish. As noted by van de Poppe, Ethereum has been trading about 6.14% below the expected cost for the proceeding month.
However, he has placed the probability at 80% that Ethereum could rise past $3,000 by September. Van de Poppe, similar to other analysts, has been comparing the present market dynamics with past cycles, including the extended drop that characterized the beginning of the 2018 bear market. This comparison implies that the current dip could possibly be a precursor to a strong recovery.
Nonetheless, there is still a problem with market demand in the face of positive technical signals. A downtrend of the weekly Relative Strength Index (RSI) means that the price indicator is experiencing a low buying pressure. According to Van de Poppe, this trend has to change for Ethereum to achieve the projected price targets. However, a more positive sentiment can be seen from the positive Coinbase Premium Index which shows that US investors are more interested.
Technically, Ethereum’s price action on different time frames remains neutral to bearish. On the 4-hour chart, ETH/USDT has constructed the bear flag pattern inside the ascending channel and is pushing towards the $2,900 mark. This price level is also close to the 200 Exponential Moving Average (EMA) on 4H chart.
In addition, on the weekly chart, Ethereum has been trading within the two-year ascending channel and often testing the channel's lower boundary. This pattern implies a possible rise of Ethereum to the $2,900 resistance level. Although the current price is still below the annual average, the strong buying pressure, evidenced by the recent extended tail on the weekly candle, suggests a possible upward movement.
The state of the altcoin market can also give a clue about the future of Ethereum in the coming days. Altcoins are currently trading at levels that were last seen in 2020 and 2023, which were the bottoms for these assets. This scenario indicates that Ethereum may be close to reaching its bottom as well, which could be a good entry point for investors. Traders in the past have said that when the market is fearful, one should take a more aggressive stand, which is very much the case in the current situation.
Concurrently, the Ethereum RSI has recently gone into the oversold territory and has rebounded from the 30% level while coinciding with an ascending support line for the ETH/USD pair. This movement could start the rebound, and hence, the price of Ethereum could surge higher.
Furthermore, the funding rates, which have been mostly positive in 2024, suggest a bullish sentiment even after the price has declined to $2,100. This optimism is further backed by a rise in the Open Interest (OI) in Ether futures, which indicates that the prolonged bear phase might be coming to an end.