Ether is preparing for a rally above the $3,000 mark, but analysts caution about potential downsides before the breakout.
The price of Ether (ETH) appears ready to surpass $3,000, as indicated by a technical chart pattern observed on the daily chart. According to an analyst’s post from October 17, the head-and-shoulder pattern suggests a short-term price target of $3,000.
Some analysts believe that Ether could reach a new all-time high in the first quarter of 2025. This projection aligns with technical analysis shared by trader Daink, who anticipates Ether hitting $4,000 before the year ends.
Despite optimistic forecasts, Ether has been in a seven-month downtrend since reaching its annual high of $4,111 in March 2024. This decline is attributed to Ethereum’s struggles in the competition for blockchain innovation.
There is a possibility of a sell-off to $2,400 before Ether’s price rally. A technical pattern on the one-hour chart indicates a potential correction to $2,400, as suggested by trader Justin Bennet.
Ether’s relative strength index (RSI) also hints at a possible correction. The RSI is currently at 59 on the daily chart, above the 14-day average of 50. Past data shows that when Ether’s RSI reached 60, a six-day correction followed, with the price bottoming at $2,309 on October 24.
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