On November 24, Ethereum failed to update its annual high, but is still trading above the $2,000 mark. Let's figure out whether ETH has maintained its fighting spirit.
Ethereum fell before the year's high
The daily timeframe shows that Ethereum began an upward movement in October. During the rise, the price broke through the descending resistance line, which originates from the yearly high of $2,140, reached on April 16.
However, ETH has not yet returned to this trend line to test its strength as support.. In addition, the token came close to its yearly high, but never reached it. Instead, it formed a falling high and a long upper wick ( red icon ) on November 24, which is considered a sign of selling pressure.
Source: TradingView
The RSI momentum indicator is giving mixed signals. It is falling and has reached the neutral level of 50. However, at the same time, a hidden bullish divergence ( green color ) has formed on the chart, which is a sign of a continuation of the trend.
Read also: Bitcoin grows 6 weeks in a row. Will BTC reach $40,000 before the end of the year?
What analysts say
Crypto traders and analysts on Platform X differ in their forecasts for Ethereum.
Thus, ColdBloodShill believes that the price may return to the $1900-$2000 area before resuming the bullish trend.
15 minute ETH/USDT chart. Source: X
Satoshi Flipper, meanwhile, attributes his optimism to fundamental reasons. In his opinion:
“Immediately after the launch of spot ETFs, institutional capital will pour into #Ethererum. It’s time for the $ETH price to reflect this.”
Finally, CryptoBusy highlighted long-term resistance at $2,100, saying the price is likely to explode once it breaks through.
ETH forecast: will the price stay above $2000
The most likely Elliott wave theory scenario suggests that the ETH price is in wave C of the ABC correction structure ( black ). The correction began following a five-wave bullish structure that began to form in October.
A 1:1 wave A:C ratio gives a low at $1900, coinciding with the 0.382 Fibonacci retracement level ( white ).
If the length of wave C exceeds the length of wave A by 1.61 times, then ETH could fall to a low of $1760, 13% from the current price. This second target will coincide with the 0.618 Fibonacci level.
Source: TradingView
Meanwhile, absorption of the wave B high at $2136 will mean that the correction is over. In this case, ETH could rise by 25% and reach the next resistance at $2500.