Odds of Ethereum price rally to $3K increase, but a few red flags remain
2024.10.18 12:05
Ether is setting up for a rally above the $3,000 psychological mark, but analysts warn of more potential downside ahead of the breakout.
Ether price looks ready to tackle $3,000
Ether (ETH) price could be gearing up for a rally above $3,000, according to a technical chart pattern emerging on the daily chart.
The analyst wrote in an Oct. 17 X post:
“ETH inverse [head-and-shoulder] reversal price pattern has a short-term price target of $3,000.”
ETH/USD, 1-day chart, inverse head-and-shoulder pattern. Source: Mikybull
The head-and-shoulder pattern is used by technical analysts as a signal that forms at the end of a downtrend, marking a bullish price reversal.
Others predict that Ether’s new all-time high could occur during the first quarter of 2025.
This puts Ether price on track to $4,000 before the end of the year, according to technical analysis shared by popular crypto trader Daink, who wrote in an Oct. 17 X post:
“All-time high will come in 2025 Q1, but for now I like $4,000.”
ETH/USDT, 1-day chart. Source: Daink
Despite the optimistic predictions, Ether remains stuck in a seven-month downtrend, falling over 36% from its yearly high of $4,111 in March 2024.
The sluggish price action could be attributed to Ethereum losing ground in the battle for layer-1 (L1) blockchain innovation, according to pseudonymous crypto analyst Ignas.
Related: Ethereum price crashes often follow ETH open interest peaks — Will history repeat?
A sell off to $2,400 could happen first
Not all traders are optimistic about Ether price’s short-term trajectory.
A technical pattern on the one-hour chart suggests that ETH could see a correction to $2,400, according to crypto trader Justin Bennet.
Bennet wrote in an Oct. 17 X post:
“It’s not a pattern I trade, but $ETH could be forming a diamond reversal pattern. The objective is $2,485 if it confirms with a close below support.”
ETH/USD, 1-hour chart. Source: Justin Bennett
Ether’s relative strength index (RSI) also suggests a potential correction. On the daily chart, Ether’s RSI stands at 59, which is above the 14-day average of 50.
The last time Ether’s RSI rose to 60, ETH price saw a six-day correction, with the RSI bottoming at 39, as Ether found its bottom at $2,309, on Oct. 24, according to Coinbase data.
ETH/USD, 1-day chart, RSI. Source: TradingView
The RSI is a popular momentum indicator used to measure whether an asset is oversold or overbought based on the magnitude of recent price changes.
Related: Two builders produce 88% of Ethereum blocks in October, raising concerns
