TL;DR
- Ethereum (ETH) has declined to around $3,500, but analysts predict potential new all-time highs due to positive technical indicators.
- Metrics such as negative exchange netflow and a low RSI suggest reduced selling pressure and possible price recovery.
Is It Time for a Resurgence?
The price of Ethereum (ETH), similar to many other cryptocurrencies, plunged significantly in the past several days. Currently, the second-biggest digital asset in terms of market capitalization is worth around $3,500 (per CoinGecko’s data), a 9% decline on a weekly scale.
Nonetheless, some analysts think ETH will face good days ahead, with some speculating about a new all-time high in the following months. The X users Wolf and Jelle are some examples.
The former presented a price chart showing that ETH has been on a bullish path since the beginning of 2024. The analyst envisioned enhanced volatility for the asset in the upcoming future, which will eventually lead to a bull run and a new all-time high price of over $5,000.
I’m guiding you to new all-time highs. $ETH. pic.twitter.com/1ovHG2HSjz
— Wolf 🐺 (@IamCryptoWolf) June 12, 2024
Jelle claimed that ETH “successfully retested the 50-day EMA.” The analyst believes the asset’s valuation could reach fresh peaks once it surpasses the $3,700 zone.
The 50-day Exponential Moving Average (EMA) is an important technical analysis tool that could suggest a potential price movement. It helps identify prevailing trends in the past 50 days but with a bigger focus on the most recent data, unlike the SMA, and provides insights into potential buy and sell levels.
What Are Metrics Signaling?
Several major indicators also hint that an ETH price revival might be in the cards. One example is Ethereum’s exchange netflow, which has been negative in the last four days. A shift from centralized trading platforms towards self-custody methods is considered bullish since it reduces the immediate selling pressure.
Separately, Ethereum’s Relative Strength Index (RSI) plummeted on June 11 to a multi-month low of 20.7, currently positioned at 36. The metric has not crossed the 70 mark since May 23.
It is a momentum oscillator that measures the speed and change of price fluctuations and identifies overbought or oversold conditions in a market. Its value varies from 0 to 100, with a ratio above 70 suggesting a pullback might be imminent.
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER 2024 at BYDFi Exchange: Up to $2,888 welcome reward, use this link to register and open a 100 USDT-M position for free!
