While most cryptocurrencies have seen their new annual highs, Ethereum did not exhibit the expected price performance in December. Despite ETF applications and negative inflation, ETH continues to show weaker than expected performance. At the time of writing, BTC is close to its annual high and ETH is struggling to surpass $2,400.
Ethereum (ETH)
ETH is showing weak performance, but this should not continue indefinitely. There have been periods in the past when it remained weak. Since May 2022, ETH has been trying to continue its upward movement along an ascending support trend line, confirming this line several times. The pullbacks reflected strong selling pressure.
ETH has formed eight bullish candles within eleven weeks and is now struggling for the tenth. The price, which has reached a stagnant resistance since the beginning of 2022, is supported by the weekly RSI breaking above resistance. A similar move previously triggered a rapid upward price performance.
What Will Be the Price of ETH?
Analysts believe that after a long period of weakness, the ETH price increase can continue. Analyst Crypto Tony wrote that the $2,500 and $2,600 levels could soon be surpassed. Michael Poppe believes that Ethereum will perform better than Bitcoin in 2024. Lastly, BrianH expects the upcoming Cancun-Deneb update to increase interest in Ethereum.
“The upcoming Cancun Deneb hard fork and the Proto-Danksharding update are expected to reduce the cost of publishing proofs on L1 for layer 2 solutions. This is likely to lead to lower transaction costs on layer 2 platforms.”
If the Ethereum price continues to close above the $2,370 resistance, it could reach a new peak between $3,360 and $3,500, which is about 40% above the current price. However, closures below resistance could trigger a return to the $2,120 support level.
After the approval of a Spot Bitcoin ETF, if volumes are strong through the ETF channel, attention will turn to ETH ETF applications. This could form the narrative for the journey to $3,500. Applications for a Spot ETH ETF by trillion-dollar asset managers like BlackRock and Fidelity have not yet been priced into the markets.
