Ethereum Price Prediction As $ETH Exits 19-Month Channel to Pursue $3400

The transition from November to December has brought a bullish wave to the crypto market, primarily driven by the Bitcoin price recovery. Ethereum (ETH), the second-largest cryptocurrency, has also gained momentum, particularly over the last week When the ETH price rebounded from the significant psychological level of $2,000. In the past six days, the Ether value has increased by approximately 11%, now trading around $2,251. Despite this positive trend, the buyers are currently confronting a long-standing resistance trendline, which poses the risk of a bearish reversal.

Also Read: Ethereum Breaks Above $2200 As ETH Open Interest Surges Above $8 Bln

Is ETH Price Ready for $3000?

• The upper boundary of the wedge pattern could stand as a strong supply pressure
• A bullish breakout from the wedge pattern would intensify the buying pressure for a rally past $3000.
• The intraday trading volume in Ether is $10.2 Billion, indicating a 78% gain.

The ETH price has demonstrated an impressive recovery in the last two months, with its price soaring from a low of $1,522 to the current level of $2251, marking a 47.8% increase. This growth has been largely attributed to the anticipated approval of a Bitcoin spot ETF and applications by large asset management firms for Ethereum spot ETFs.

However, From a technical standpoint, this recovery can be viewed as a bullish swing within a wedge pattern carrying a modest recovery path for the past 19 months. Historical data suggests that when the Ethereum price retests the upper trendline of this pattern, it often faces increased selling pressure, leading to a substantial correction back to the lower trendline.

Should the current resistance level push the altcoin price below the new support level of $2,133, this could signal a shift in favor of sellers and potentially initiate a bearish reversal.

Conversely, a breakout above the wedge pattern could further accelerate the ETH recovery, potentially driving prices toward targets of $2,500 and then $3,000.

ETH Staked Realized Price Surpasses $2K

Source- CryptoQuant

The Ethereum network recently witnessed a significant development as the average unit price of $ETH staked surged past $2,000. This milestone is particularly noteworthy as it represents a crucial support and resistance level for long-term investors. According to Julio, the Head of Research at CryptoQuant, this price point is pivotal because it reflects the average unit price for those committed to holding $ETH for extended periods. Surpassing the $2,000 mark indicates that most long-term investors are now in a profitable position. This shift is expected to solidify $2,000 as a key support level, potentially influencing future market dynamics and investor sentiment toward Ethereum

• Bollinger Band: An uptick in the upper boundary of the Bollinger Band indicator reflects the buyers currently dominating this asset.
• Average Directional Index: the ADX slope at a high of 34%, reflects the BTC price may witness minor pullbacks to replenish bullish momentum.