Ethereum’s native token ETH has seen a strong start to December, surging to a new yearly high around $2183 over the weekend. This marks a notable breakout after a prolonged period of rangebound price action between $1200-$1400 throughout the end of 2022.
What’s driving this renewed momentum? According to prominent crypto analyst Ali, the key support level of $1900-$2100 is likely acting as a price floor. Data shows nearly 44 million ETH were acquired in this range across 5.85 million wallets. As such, Ali suggests Ethereum’s surge above $2000 makes it a “prime buying moment” with the potential for the $1900-$2100 zone to now provide multi-year support.
Ali sees even more upside potential if Ethereum can sustain its breakout on a weekly timeframe. Specifically, he notes “If $ETH secures a sustained weekly candlestick close above $2,150, the path might be set for an exciting uptrend.” In terms of price targets, Ali suggests Ethereum could start “marching towards $2,600, and possibly even soaring to $3,500!”
This underscores the significance of Ethereum’s recent move if it manages weekly closes above $2150. Not only would this confirm the breakout, but open the door for a rally back towards its 2022 high of $2800. And with momentum firmly shifting positive, Ali believes further gains towards $3500 cannot be ruled out if ETH triggers sustains this higher pricing level in the weeks ahead.
Fellow analyst Bluntz echoed this bullish sentiment, noting Ethereum looks poised to “finally get a strong weekly close above a 530+ day range.” Bluntz sees similarities with how other cryptos like Chainlink have staged upside breakouts after long periods of consolidation.
Checking the daily RSI of 55, this shows Ethereum has room to run before hitting overbought territory. As a momentum oscillator, RSI below 70 is generally seen as having space for further gains without being at extreme risk of mean reversion.
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Analysts are growing increasingly bullish on Ethereum as it shows follow-through after breaking key resistance. The network effects remain strong with nearly 6 million wallets having bought between $1900-$2100. All eyes will be on whether Ethereum can maintain this breakout and set the stage for an assault on 2022 highs around $3500.
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