Ethereum ‘final dip’ to $2.5K likely before ETH treks to new all-time high — Analyst
2024.10.31 13:00
Ether (ETH) price has struggled to find bullish momentum for months, with the altcoin demonstrating a mere 1% rise in October compared to Bitcoin’s (BTC) 14% return.
The perceived lack of interest from retail and institutional investors is also weighing on Ether price, with the ETH ETF witnessing $4.4 million in inflows on Oct. 30 compared to BTC ETF’s $893 million. That is a 0.49% share relative to its direct competitor.
Spot Bitcoin and Ethereum ETF inflows comparison. Source: X.com
However, the altcoin’s bearish days might be numbered, as a technical analyst indicated that Ether’s final dip has been completed, and greener days are ahead.
ETH’s “final dip” was at $2,500
Poseidon, an independent trader, believes that Ethereum had already experienced its “final dip” last weekend. The altcoin dropped to $2,382 but immediately recovered above $2,500 within 48 hours. The trader explained that ETH reclaimed the 200-day EMA level in the 8-hour time frame, and the weekend decline was a “bear trap/deviation.”
ETH/USD 8-hour analysis by Poseidon. Source: X.com
Poseidon added,
“If it holds above $2600, I’ll add more long positions. I still believe this range will ultimately break to the upside.”
Based on the analysis, Ethereum is looking at an 88% return on investment (ROI) from $2,500, and it will attain new all-time highs sooner rather than later.
Meanwhile, the ETH/BTC chart is also approaching a critical level as the ticker reaches its lifetime point of control (POC). MaxBecauseBTC, an anonymous crypto analyst, highlighted that the ETH/BTC chart is reaching a range where most transactions have occurred since 2016. Thus, it is a key support range where prices can undergo a sharp trend reversal.
ETH/BTC POC chart by MaxBecauseBTC. Source: X.com
Related: 3 signs Ethereum price is gearing up for a rebound toward $6K
Ethereum chases 200-EMA flip on the daily chart
From a technical perspective, Ether continues to move higher from the ascending trendline support, and there is another possibility of a retest in the $2,550 to $2,600 range. On the daily chart, the price is forming an ascending triangle, which is a bullish pattern.
With overhead resistance at $2,800, ETH’s immediate target would be to flip the 100-day and 200-day EMA levels to add bullish confluence to its price action.
Ethereum 1-day chart. Source: TradingView
The relative strength index, or RSI, is also above 50 but remains below the 70 mark, which means there is a healthy dominance from the buyers without the asset being overbought.
With the Bollinger Bands converging, prices may move with less volatility over the next few days, but it could immediately ramp up if ETH closes a daily position above $2,800.
Related: Ethereum reclaims 42% outflows from Solana — DeFi Report
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
