As an experienced analyst, I’ve seen my fair share of market fluctuations, and the recent downturn in Ethereum (ETH) is not an unfamiliar sight. However, despite the current bearish trend, there are several positive technical indicators that suggest potential new all-time highs for ETH in the near future.
TL;DR
- Ethereum (ETH) has declined to around $3,500, but analysts predict potential new all-time highs due to positive technical indicators.
Metrics such as negative exchange netflow and a low RSI suggest reduced selling pressure and possible price recovery.
Is It Time for a Resurgence?
The price of Ethereum (ETH), similar to many other cryptocurrencies, plunged significantly in the past several days. Currently, the second-biggest digital asset in terms of market capitalization is worth around $3,500 (per CoinGecko’s data), a 9% decline on a weekly scale.
Despite this, some analysts hold the belief that Ethereum’s future looks promising, with certain individuals even predicting potential new record highs within the upcoming months. Users such as Wolf and Jelle represent a few of these optimistic perspectives.
As an analyst, I have observed that ETH has been following an uptrend since the commencement of 2024. However, I anticipate heightened volatility for this asset in the imminent future. This volatility is expected to culminate in a bull run, ultimately propelling ETH towards a new peak price surpassing $5,000.
I’m guiding you to new all-time highs. $ETH.
— Wolf (@IamCryptoWolf) June 12, 2024
I believe Jelle’s assertion that Ethereum has passed the test of its 50-day moving average. If Ethereum manages to break through the $3,700 mark, its value could potentially reach new highs.
The 50-day Exponential Moving Average (EMA) is a valuable technical analysis indicator that may signal forthcoming price shifts. It highlights the underlying trends of the previous 50 days, yet puts greater emphasis on more recent data compared to the Simple Moving Average (SMA). As such, it offers useful information regarding potential buying and selling opportunities.
What Are Metrics Signaling?
Several signs point to a potential Ethereum price recovery. One of these indicators is Ethereum’s exchange outflow, which has been negative for the past four days. This trend, where Ethereum is moving from centralized trading platforms to self-custody methods, is seen as bullish because it decreases immediate selling pressure.
As a researcher studying the Ethereum market, I’ve observed that its Relative Strength Index (RSI) experienced a significant decline on June 11, reaching a multi-month low of 20.7. Currently, it stands at 36. Notably, the RSI has not surpassed the 70 threshold since May 23.
The momentum oscillator is a powerful tool that calculates the rate at which prices are changing and helps determine if a market is overbought or oversold based on these fluctuations. Its value ranges from 0 to 100, with readings above 70 indicating potential for a price correction.
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2024-06-13 09:08