Ethereum The price has recently exhibited many signs of a ‘return’, triggering a lot of speculation in the market. According to technical analysis, it will reach $ 2500 in mid-January 2024. However, this technical analysis is based on a very general assumption and things can change at any time.
As can be seen from the ETH/USD chart, the Ethereum price is currently moving with a very high momentum. This points to a momentum showing signs of ‘permanently overbought’, which is slightly behind the overbought zone. The Relative Strength Index or RSI also supports this view. Moving averages (MAs), which are used to analyze long-term trends, show an upward trend when short-term MAs cross above long-term ones, indicating that upward momentum is continuing.
The separation between the 50-day and 200-day moving averages is increasingly widening, which is interpreted as confirmation of a strong trend. However, this divergence could also herald a long-term correction, especially if the price continues to widen without consolidation. Additionally, declining volume accompanying recent price increases also raises concerns. Solid volume is the hallmark of sustainable price movements, without which the likelihood of a pullback increases.
Considering these factors, mid-January 2024 stands out as a pivotal moment for Ethereum. If the current momentum continues and volume increases to confirm the trend, reaching $2,500 is possible. This projection assumes current support levels remain intact and buyer interest continues unabated.
However, investors should heed the warning signs. Decreasing volume is the primary indicator to watch as it can bring about some issues and cause momentum to decrease in the future. Moreover, there is the potential for a long-term correction if the market perceives that the price has exceeded the fundamentals.