Ethereum price faces resistance at $2,500: Will it bounce back or fall further?
Ethereum price has dropped below the Tenkan-Sen at US$3,000 and the 50% Fibonacci retracement at US$2,900. Participation and momentum have declined dramatically on both sides of the Cryptocurrency market, although the short-term trend is downward.
Ethereum price movement continues to slowly fall south into its final support zone
Ethereum’s price has been volatile in the past year, reaching an all-time high of over US$4,300 in May 2023, before plunging to below US$2,000 in July 2023. Since then, Ethereum has recovered some of its losses, but it is still facing a strong resistance zone near US$2,700, where it may find support from the Kijun-Sen and the 61.8% Fibonacci retracement level. A successful breakout above this level could trigger a new uptrend towards US$3,300 and beyond.
However, a failure to hold above US$2,500 could signal a deeper correction to the 2022 low near US$2,100. The current Ethereum price, as of January 15, 2024, is US$2,521.216, which is a 2.47% increase from the previous day.
The inverse head-and-shoulders pattern discovered on February 12 and the bullish divergence in Ethereum’s oscillators are still active and structurally unaltered. Ethereum’s crypto price might fall below the 61.8% Fibonacci retracement at US$2,500 before forming a swing bottom, but this would threaten to negate the underlying bullish divergence between the candlestick chart and the Composite Index and Optex Bands.
A strong breakthrough of the Ethereum price over US$3,300 would immediately trigger a drive to retest US$4,000.
Bulls and bears should keep an eye out for any daily closure below the 61.8% Fibonacci retracement at 2,500, as this would indicate a likely sell-off to the 2022 bottom under US$2,100.
Ethereum price is influenced by various factors, such as supply and demand, network activity, innovation, regulation, and competition. Some of the recent developments that may affect Ethereum’s price are:
The launch of the “London” hard fork in August 2023, introduced a new fee mechanism called EIP-1559, that burns a portion of the transaction fees and reduces the inflation of ether.
The ongoing transition to Ethereum 2.0, is a major upgrade that aims to improve the scalability, security, and efficiency of the network by switching from a proof-of-work to a proof-of-stake consensus mechanism.
The growing adoption of decentralized finance, or DeFi, which is a sector that leverages Ethereum’s smart contracts to offer various financial services, such as lending, borrowing, trading, and investing, without intermediaries.
The increasing popularity of non-fungible tokens, or NFTs, are unique digital assets that represent various forms of art, collectibles, gaming, and more and are mostly created and traded on Ethereum.
The rising competition from other smart contract platforms, such as Cardano, Solana, Polkadot, and Binance Smart Chain, claims to offer faster, cheaper, and more scalable solutions than Ethereum.
Ethereum Price Prediction for January 2024
In the dynamic environment of Ethereum’s price trajectory for January 2024, estimates point to a potential range of US$2500 to US$2550 – if ETH price breaks out of its current sluggishness and breaches US$2400 shortly. Ethereum is primed for a possible rise in the face of market volatility and changing patterns, aided by continuous market euphoria.
Price estimates imply that this month will see consolidation within this range, with sporadic swings caused by market sentiment and external factors. The price momentum coincides with rising investor interest and ongoing technological breakthroughs in the Ethereum ecosystem, paving the way for an exciting start to the year for both ETH aficionados and traders.
Ethereum Price Prediction for February 2024
As February 2024 approaches, Ethereum anticipates a potentially enticing period within the price range of US$2500 to US$2650. This is a fascinating time, ripe for dramatic developments fueled by market sentiment and possibly external factors.
ETH price forecasts suggest that the Ethereum price will swing within this range, with intermittent spikes or falls reflecting changing market dynamics and continuous investor interest in the Ethereum spot ETF.
