“Ethereum’s relentless rise and a unique technical pattern suggest that $3,000 could be just the beginning for this cryptocurrency’s meteoric ascent.”
The Ethereum (ETH) price has reached a high of $1,865 today, breaking a 190-day descending resistance trendline. This marks a nearly 20% increase in the past seven days. The question now is whether ETH will continue to break out from this trendline.
Looking at the daily time frame chart, we can see that the Ethereum price has been decreasing alongside the descending resistance trendline since reaching its yearly high of $2,141 in April. However, after falling to a low of $1,521 on October 12, ETH began an upward movement that is still ongoing.
Today, the price reached the trendline that has been in place for 193 days, marking the third attempt at breaking out. The daily Relative Strength Index (RSI) supports the continuation of this increase. The RSI is currently above 50, which suggests a bullish trend. While the indicator is overbought, there has not been any bearish divergence that could lead to a drop.
In terms of positive news for Ethereum, the layer-2 protocol Scroll has launched to the mainnet, offering Ethereum compatibility with Ethereum Virtual Machine (EVM) contracts powered by zero-knowledge proofs. Additionally, the privacy protocol Nocturne announced a $6 million seed round, with participation from Vitalik Buterin. Nocturne Labs will launch its protocol on the mainnet in November.
There is also some speculation surrounding a potential liquidation for Frog Nation CFO 0xSifu if the ETH price reaches $1,970. Users are calling for a rally to trigger the liquidation.
In terms of price prediction, technical analysts are employing the Elliott Wave theory, which suggests that ETH is in wave three of a long-term five-wave upward movement. If ETH breaks out above the main resistance area at $1,950, it could increase by 90% to the next resistance at $3,400.
However, it is important to note that a decrease below the sub-wave two low of $1,521 would invalidate this bullish count and could result in a 30% fall to the closest support at $1,200.
Overall, the Ethereum price has shown strong upward momentum, breaking a long-term descending resistance trendline. Positive news and technical analysis suggest the potential for further gains, but caution should be exercised if the price falls below key support levels.