Ethereum (ETH) report in light of the current rise and forecasts for the coming week

Current situation of Ethereum (ETH):

Ethereum (ETH) is experiencing notable bullish momentum in recent days, recording strong gains according to analyses from traders on platform X. The price of Ethereum reached levels close to $2383, achieving an increase of nearly 35% in a short period. This rise was supported by breaking important technical resistance levels, such as the 50 and 200 moving averages, enhancing confidence in the continuation of the bullish trend in the near term.

• Recent performance: Ethereum saw a strong daily candle with a rise of up to 20%, marking one of the strongest bullish candles since 2021, reflecting current momentum strength.

• Trading volume: Ethereum's trading volume increased by 10.3% over the last 24 hours, indicating rising market activity.

• Current price: Ethereum is currently trading at around $2383, with a slight decrease of 3% over the past 24 hours and 1.4% over the past week, reflecting a potential correction period after a strong rise.

Technical analysis and market indicators:

1 Moving averages:

◦ Ethereum breaking the 50 and 200 moving averages is a strong bullish signal. Stability above these levels supports the expectation of continued rise.

◦ According to Investing.com, moving averages indicate strong buy signals on the daily timeframe.

2 Relative Strength Index (RSI):

◦ The RSI is approaching levels indicating overbought conditions on the daily timeframe, which may signal a short-term correction or lateral volatility before continuing to rise.

3 Support and resistance levels:

◦ Support: The $2200 level is currently considered strong support, with additional support at $2000 in case of a drop.

◦ Resistance: The next level is at $2400, and if broken, Ethereum could target $3400 in the near term.

4 Volume:

◦ Some analyses indicate that the recent rise was accompanied by a slight decrease in trading volume, which may suggest caution among some traders. However, the recent increase in liquidity supports the bullish trend.

Fundamental factors affecting:

• Network developments: Ethereum continues to strengthen its position as a leading platform for decentralized applications and smart contracts, with ongoing updates aimed at improving scalability and reducing transaction costs.

• Market sentiment: Overall optimism in the cryptocurrency market, driven by Bitcoin's rise to levels close to $97,000, supports Ethereum as a key alternative currency.

• Ethereum Foundation: A report from the Ethereum Foundation for 2024 revealed a treasury of $970 million, with new policies to enhance transparency, boosting confidence in the project.

• Whale activity: Movements of large Ethereum holders may impact prices, as significant sell-offs can lead to downward pressure, while increased demand supports the bullish trend.

Forecast for the coming week:

• Bullish scenario:

◦ If Ethereum maintains trading above the 200 moving average (around $2383) and breaks the $2400 level, it is likely to target $3400 during the coming week.

◦ Daily positive closes above $2400 will enhance the likelihood of reaching new highs.

• Bearish scenario:

◦ If Ethereum fails to maintain the $2200 level, it may retreat to $2000, especially if the market experiences a general correction led by Bitcoin.

◦ Decreasing trading volume or weekly close below $2200 may indicate weakness in the bullish momentum.

• Lateral volatility:

◦ Ethereum is likely to experience lateral volatility around the $2383 level, as the price stabilizes after the recent strong rise. This scenario is supported by expectations of temporary stability before breaking the next resistance.

Recommendations for traders:

1 Entry points:

◦ Buy at support levels $2200-2300, placing stop-loss orders below $2000.

◦ Wait for confirmation of breaking $2400 to enter long-term trades targeting $3400.

2 Risk management:

◦ Due to the fluctuations in the cryptocurrency market, it is recommended to use a low-risk ratio (1-2% of capital per trade).

◦ Monitor daily and weekly candle closes to confirm the trend.

3 News follow-up:

◦ Monitor any updates related to the Ethereum network or changes in overall market sentiment, especially with Ethereum's correlation to Bitcoin's movement.

Summary:

Ethereum is experiencing a strong bullish phase supported by positive technical indicators and increasing market momentum. Despite the possibility of a short-term correction or lateral volatility, the outlook for the coming week leans towards positivity with potential targets at $3400 if it breaks $2400. Traders are advised to monitor key support and resistance levels and manage risks carefully to take advantage of current opportunities.

Note: Cryptocurrency prices are highly volatile, and forecasts should not be relied upon as a substitute for personal research. Consult a financial advisor before making investment decisions.

Sources:

• Platform X analyses:

• Investing.com:

• CoinGecko:

• Cryptopolitan:

• Binance:

• MEXC: