Pentosh1 believes that the weekly chart indicates that the price will reach a new yearly high since it has not swept its previous highs yet.
However, on lower timeframes, he believes that a sweep of the $2,000 lows is likely, stating that:
On lower time frames would like to get some size on a sweep of those lows at 2010 chart #2
ETH Price Prediction: Will New Yearly High Be Reached?
Utilizing the Elliott Wave theory, technical analysts study recurring long-term price patterns and investor psychology to ascertain trend directions.
A notably positive outlook is evident in the weekly analysis, corresponding with Ethereum’s price breaking out from long-term horizontal resistance at $1,950.
This analysis suggests that ETH is presently in the third wave of a five-wave upward cycle (black), originating in June 2022.
The sub-wave progression, outlined in white, indicates that ETH is currently within the third sub-wave.
The increase is also supported by the weekly RSI, which has just moved above 50.
Giving waves one and three a 1:1.61 ratio leads to a high of $3,250. This is very close to the long-term resistance at $3,500. Reaching it would require an Ethereum price upward movement of 65%.
However, it’s crucial to note that despite this bullish ETH price prediction, a weekly close below the $1,950 long-term resistance will invalidate the breakout. A 40% drop to the closest support at $1,200 could occur in that case.
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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.