On November 9, BlackRock’s filing for an Ethereum (ETH) trust sparked a surge in the cryptocurrency, briefly surpassing $2,000. While the weekend saw a slight dip, the question remains: can ETH breach its yearly high this week?
Ethereum’s Rally and Technical Analysis
Examining the daily chart reveals a breakout from a descending resistance trendline on November 5, in place for over 200 days. Following the breakout, ETH hit $2,136, narrowly missing the yearly high of $2,140. The current price hovers around $2,060.
The Grayscale Ethereum Fund discount reduced to 14%, a significant turnaround from the 60% discount earlier in the year, potentially influenced by BlackRock’s trust filing. The daily Relative Strength Index (RSI) suggests a bullish trend, positioned above 50 without signs of a bearish divergence.
Crypto traders express optimism, with EmilyKols69 noting a bullish trend post-breaking the psychological resistance at $2,000. 52kSkew underscores the significance of the $2,000 level, while Pentosh1 anticipates a new yearly high based on the weekly chart, though a sweep of the $2,000 lows on lower timeframes is plausible.
Ethereum Price Prediction: The Elliott Wave Theory
Utilizing the Elliott Wave theory, analysts project a positive trajectory, placing ETH in the third wave of a five-wave upward cycle that began in June 2022. A 1:1.61 ratio between waves one and three suggests a potential high of $3,250, close to the long-term resistance at $3,500. A bullish move of 65% would be required to reach this level.
Despite the optimism, a weekly close below the $1,950 long-term resistance could invalidate the breakout, potentially leading to a 40% drop to the closest support at $1,200.
Conclusion and Disclaimer
While the Ethereum community eagerly anticipates new highs, it’s crucial to approach these predictions with caution. Market conditions are subject to change, and the analysis provided is for informational purposes, not financial advice. Always conduct thorough research and consult professionals before making investment decisions.