In a notable rebound, Ethereum (ETH) registers a 2% price increase on Jan. 5, climbing back to $2290 following a recent market downturn.
Ethereum Paths To Recovery
In a recent X post, Michaël van de Poppe, MN Trading’s founder, highlights ETH’s current momentum but underscores a noticeable gap compared to Bitcoin. He foresees a consolidation phase before Ethereum targets the ambitious range of $3,000 to $3,500 in Q1 2024.
As ETH aims for recovery, on-chain and technical indicators support a bullish outlook for the cryptocurrency. Despite slipping to $2,100 on Jan. 3 due to Matrixport’s ETF-rejection post, ETH swiftly recovers, currently trading at $2,244, hinting at a possible upward move.
The Relative Strength Index (RSI), recovering from oversold levels, hovers around 42, indicating a gradual upward momentum. Meanwhile, the Awesome Oscillator (AO) suggests a decline in bearish momentum, approaching the zero line, signaling potential bullish strength.
In a scenario where Ethereum solidifies support above $2,300, it could target a retest of the $2,400 barrier. A highly bullish outcome might propel ETH to the 161.8% Fibonacci level at $2,562 and the monthly resistance level at $2,652.
Adding to the analysis, Changelly experts anticipate a possible rise to $3,000 for Ethereum by July 2024. They caution that these projections hinge on market conditions and are subject to fluctuations.
CFGI.io’s crypto sentiment tracker notes Ethereum’s fear and greed index at 41%, reflecting a neutral stance. The bullish sentiment is reinforced by a notable increase in Whale Transaction Count and Volume on January 3, as per Santiment’s data.
Notably, approximately 10.77 million addresses holding 5.2 million Ether currently are in a loss position at this level.
Consequently, an attempt to breach this obstacle could trigger a significant surge in selling activity as these holders seek to offset their losses and attain a break-even point.
