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Ethereum (ETH) has been showing signs of a potential uptrend. While Solana (SOL) is facing the possibility of a correction after a long period of overbuying. As Solana and other altcoins were rising, everyone was wondering why Ethereum remained so quiet. However, Ethereum broke its silence last evening, delighting its investors with a rise.
Ethereum’s Potential for Growth
Ethereum (ETH) has been in a consolidation phase throughout December, fluctuating between the significant support level at $2,147 and the resistance at $2,380. Technical indicators such as the Relative Strength Index (RSI) suggest that the largest cryptocurrency might be preparing for a positive short-term movement.
On the other hand, the SOL market is showing signs of weakness as technical indicators point to a potential decline in Solana’s price. This follows a long period of being significantly overbought, marked by the RSI consistently above the 70 level since October 18, indicating a corrective phase is due.
Ethereum’s Outlook Shines at the Expense of Solana
Following Solana’s notable rise in the fourth quarter, the SOL market seems to be taking a breather, allowing capital to flow back to ETH. Ethereum’s price appears ready for a rise at the expense of Solana.
The RSI’s northward trajectory indicates increasing momentum, and the Awesome Oscillator (AO) staying in the positive region further supports the bullish outlook. If buying pressure strengthens above current levels, Ethereum’s price could rise and potentially convert the $2,420 resistance into a support level before testing the $2,475 range.
Will Ethereum Reach $2,500?
In a continued uptrend scenario, Ethereum’s price could create a 7% climb from current levels, increasing gains to reach the anticipated psychological level of $2,500.
However, if the $2,450 resistance persists, Ethereum’s price could lose the critical support at $2,147. Breaking this support would invalidate the bullish outlook. In a more bearish scenario, Ethereum’s market value could drop to test the supply barrier, now acting as a break in the rise between $2,049 and $2,107.
A decisive break and close below the middle line at $2,075 would confirm the continuation of the downtrend. Moreover, Ethereum’s price could potentially spiral towards the $2,049 support level, last tested in November. As of writing this article, ETH is trading at $2,417.
