Ethereum Price Outlook After Monthly Breakout: $3800 by End of 2023, $4800 in 2025?After reaching an all-time high of $4093 in early April 2023, Ethereum (ETH) experienced a significant correction, bottoming out near $2100 a near 50% decline. This contrasted sharply with Bitcoin (BTC), which corrected from $73,700 to around $49,000, a roughly 30% drop
Ethereum Price Outlook After Monthly Breakout: $3800 by End of 2023, $4800 in 2025?
After reaching an all-time high of $4093 in early April 2023, Ethereum (ETH) experienced a significant correction, bottoming out near $2100 a near 50% decline. This contrasted sharply with Bitcoin (BTC), which corrected from $73,700 to around $49,000, a roughly 30% drop. This discrepancy sparked discussions about Ethereum's relative weakness. When Bitcoin was at $70,000, Ethereum hovered around $4000 and $2500; when Bitcoin hit $90,000, Ethereum remained around $3100. Online mockery of Ethereum's performance further fueled the perception of its underperformance during this bull run.
However, it's important to note that Ethereum also saw a strong rally from $2357 in early November to $3440 by the end of November a nearly 50% increase, mirroring Bitcoin's rise from $67,000 to $94,000 during the same period. Yet, Ethereum recently experienced a substantial pullback, falling below $3100 again as Bitcoin approached $94,000.
The monthly chart suggests Ethereum's upward trend isn't over. From early March to late October, Ethereum underwent an 8-month correction. The likelihood of a one-month rally followed by an immediate end is low; at least two more months of upward momentum are expected. Given Bitcoin's new all-time high and potential further rise to $100,000, while Ethereum hasn't yet broken $4000, declaring the end of its rally is premature. The previous bull run (2021) saw Ethereum surpass $4800. Although hailed as the "king of altcoins," Ethereum's position has been challenged this year by cryptocurrencies like Solana.
Weekly chart analysis shows Ethereum broke out of the $2150-$2800 range in early November. The past two weeks have seen price consolidation, a pullback from the $1100 November gain. If the correction reaches half the gain, around $550, the $2850 level could provide significant bottom support. Investors should maintain cautious optimism at this level, aggressively buying dips. The weekly chart indicates consistent trends for Bitcoin and Ethereum; investors can focus on one asset or diversify appropriately, avoiding frequent position switching. For example, blindly chasing Bitcoin while selling Ethereum could result in missing subsequent Ethereum gains.
The monthly chart shows Ethereum has broken through a key resistance level. How should the subsequent price action be interpreted? Personally, the daily chart indicates Ethereum is currently in a consolidation phase. This consolidation is expected to complete this week, likely within the $2850-$2900 range. Once consolidation ends, a price increase to around $3800 is anticipated before the end of December. Whether it will surpass $4000 requires further observation.
After the anticipated December rally, a correction should be anticipated. A correction of approximately $600, bringing the price down to around $3000, is expected. Breaking the $4800 all-time high may not happen until 2025. A $4800 breakthrough this year is less likely, but surpassing $4000 remains a possibility.
Summary:
1. Aggressively buy if Ethereum retraces to below $2900. A price increase to $3800 is expected before the end of December.
2. 2025 could see another major rally for Ethereum, with late January 2025 potentially being a significant buying opportunity.
Ethereum is highly volatile. This analysis is for informational purposes only. Investors should make their own decisions based on their risk tolerance. All investments carry risk; avoid blindly following trends. Conduct thorough market research and risk assessment before investing. This analysis does not constitute investment advice.
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