Ethereum (ETH) Heading towards $3,500: A big hurdle to overcome

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Ethereum (ETH) price has surged since October and is approaching a long-term horizontal resistance zone.

Can ETH break out of this zone and finally stop underperforming the rest of the cryptocurrency market? Let’s take a look!

Ethereum approaches key resistance level

Since May 2022, Ethereum price has been rising alongside rising support lines. This trendline has been verified multiple times, most recently in October 2023 (green symbol). Since then, ETH has created eight bullish candles in 11 weeks and is currently creating its ninth such candle.

ETH price has reached an area of long-term horizontal resistance that has been in place since early 2022.

Traders use RSI as a momentum indicator to assess whether the market is overbought or oversold and whether to accumulate or sell assets. If the RSI is above 50 and sloping upward, bulls still have the advantage, but if the index is below 50, the opposite is true.

The weekly RSI is rising, almost entering overbought territory. Previously, this catalyzed an upward parabolic move (green vertical line).

ETH/USDT Weekly Chart | Source: TradingView

What do analysts say?

Cryptocurrency analysts are optimistic about the future direction of ETH. With the previous range restored, Crypto Tony believes the next target lies between $2,500 and $2,600.

ETH/USDT daily chart | Source: X

Crypto Michigan believe By 2024, Ethereum will outperform Bitcoin. Finally, BrianH believe The upcoming Cancun-Deneb upgrade will reduce transaction fees on Ethereum and its layer 2:

“The upcoming Cancun Deneb hard fork and Proto-Danksharding update are expected to reduce the cost of issuing L2 proofs on L1. This will reduce transaction costs on the L2 platform.”

ETH price prediction: When will the price reach $3,000?

Technical analysis on the daily time frame is bullish for the future trend of ETH due to price action and RSI.

Price action suggests that Ethereum is moving above the minor resistance at $2,370, after breaking the long-term resistance at $2,120 and confirming it as support (green symbol).

The daily RSI supports this rise as it forms a hidden bullish divergence (yellow), indicating that the trend is continuing.

In the absence of overhead resistance, a close above this move could trigger a strong upward move towards the next resistance level between $3,360 and $3,500. This price is 40% higher than the current price.

ETH/USDT daily chart | Source: TradingView

Despite this bullish forecast, a close below $2,370 could result in a 12% drop in the price to the $2,120 horizontal support area.

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Disclaimer: This article is for reference only and does not constitute investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.