Ethereum's Future: Rally to $4,300 or Drop to $1,400?
Ethereum is currently above critical support at $2,940, with analysts predicting a potential rise to $4,300 if it remains above $2,630. However, there's also a risk of decline.
Ethereum (ETH) is currently trading close to $2,900, having experienced a notable decline of over 12% in the last week. Despite this downturn, the cryptocurrency is maintaining a position above a significant technical level. Traders are closely monitoring whether this will lead to a breakout towards $4,300.
Key Fibonacci Support Level
Crypto analyst StockTrader_Max has noted that ETH is currently above its 0.618 Fibonacci retracement level, located at about $2,940.
StockTrader_Max stated: “$ETH is holding above its 0.618 FIB well..” A bounce here is expected with the next destination being $4,300 馃幆 pic.twitter.com/MNLyWcq6PS
In this context, this price area marks a potential inflection point after completing a corrective movement. Market structure seems to indicate that a corrective phase may have concluded, leading to a new upward trend.
Based on the expected 1.618 extension, a price target near $4,300 could be achievable as long as ETH sustains a position above $2,630. Conversely, breaking below that threshold would weaken the outlook, and any decline beneath $1,390 would nullify this bullish setup.
Furthermore, Don highlighted that ETH has recently broken out from a falling wedge on the 5-day chart. This pattern is typically associated with upward trends. Even though ETH has lost certain supports on shorter timescales, its resilience on longer timeframes remains intact. “It鈥檚 just slow cooking for $ETH,” Don added, implying that the increase may require more time to materialize.
Diverging Opinions from Analysts
While some analyses suggest a recovery, not all perspectives align positively. Ali Martinez pointed out:
“Closing December below $2,930 could send Ethereum to $2,000, or even $1,100.”
Analyst Max Crypto also pointed out that ETH’s returns for December have turned negative, indicating that if the month concludes in the red, it would mark the ninth negative month this year鈥攁 scenario that previously occurred in 2018.
Despite the mixed signs, significant buyers seem unfazed by market fluctuations. BitMine Immersion Technologies recently acquired over 100,000 ETH, valued at more than $300 million, within a week, showcasing that while smaller traders may be offloading their assets, larger investors are entering the market.
