Odds of Ethereum price rally to $3K increase, but a few red flags remain

As a seasoned researcher with years of experience navigating the volatile world of cryptocurrencies, I find myself intrigued by this latest development in Ether’s price action.


Ether could be poised to surge beyond the significant level of $3,000, yet experts caution that there may still be room for further declines before any upward breakthrough occurs.

Ether price looks ready to tackle $3,000

The value of Ether (ETH) might be preparing to surge beyond $3,000, based on a potential technical chart configuration observed in its daily graph.

The analyst wrote in an Oct. 17 X post:

“ETH inverse [head-and-shoulder] reversal price pattern has a short-term price target of $3,000.”

Odds of Ethereum price rally to $3K increase, but a few red flags remain

Technical analysts often employ the head-and-shoulder chart formation to indicate an upturn at the conclusion of a downward trend, suggesting a potential price increase or bullish market shift.

Others predict that Ether’s new all-time high could occur during the first quarter of 2025.

Based on technical analysis posted by well-known cryptocurrency trader Daink, it is projected that Ether’s price may reach $4,000 before year-end. This was mentioned in a recent post dated October 17th on his blog.

“All-time high will come in 2025 Q1, but for now I like $4,000.”

Odds of Ethereum price rally to $3K increase, but a few red flags remain

As an analyst, I must admit that while I had initially hoped for a continued upward trajectory, Ethereum has been persistently trending downward for the past seven months. This downtrend has resulted in a significant drop of approximately 36% from its yearly high of $4,111 achieved in March 2024.

According to a cryptocurrency analyst known as Ignas, the slow movement in Ethereum’s prices might be due to Ethereum being outpaced in the race for cutting-edge innovation among Layer-1 (L1) blockchains.

A sell off to $2,400 could happen first

Not all traders are optimistic about Ether price’s short-term trajectory.

Based on a specific chart pattern observed over an hour, crypto trader Justin Bennet predicts a possible decline in Ethereum’s price towards around $2,400.

Bennet wrote in an Oct. 17 X post:

“It’s not a pattern I trade, but $ETH could be forming a diamond reversal pattern. The objective is $2,485 if it confirms with a close below support.”

Odds of Ethereum price rally to $3K increase, but a few red flags remain

The Relative Strength Index (RSI) for Ether, when considered, indicates a possible price adjustment. Currently, on its daily graph, Ether’s RSI is at 59, higher than the usual 14-day average of 50.

Previously, when Ether’s Relative Strength Index (RSI) reached 60, the price of ETH experienced a six-day downturn. The RSI subsequently dipped to 39, indicating that Ether had hit its lowest point at $2,309 on October 24, based on data from Coinbase.

Odds of Ethereum price rally to $3K increase, but a few red flags remain

One simple rephrasing could be: The Relative Strength Index (RSI) is a commonly-used tool that helps determine if an asset’s price movements are excessively high or low compared to its past performance.

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2024-10-18 18:27