With Bitcoin sustaining levels above $52,000, altcoins like Ethereum have embarked on renewed waves of recovery so far in February 2024. Amidst this bull run, ETH prices tapped new 52-week highs last week, feeding optimism around the crypto’s outlook. The big question now is: just how high can Ethereum trend in the months ahead?
Analysis of weekly price charts reveals Ethereum, with its $350 billion market cap, staged a rounding bottom breakout by reclaiming the $2,900 zone. This signals strengthening upside momentum backed by a 27% spike in trading volumes to $24 billion – indicative of rising buying pressure.
After logging 17.6% gains last week, ETH has rallied 26% across the past three weeks. It started this week on solid footing too, adding 3.3% on Monday to trade around $2,910 at press time. The technical posture indicates scope to push towards $3,000 next.
Also read: Ripple (XRP) Faces Resistance at $0.60, But Analysts Expect 20% Surge
Crucially, by breaking past the 50% Fibonacci retracement level from its historical peak, Ethereum has notched a bullish milestone that hints at a trend reversal. This Fib level often forms tough resistance, restricting further recovery rallies.
Adding to upside potential, the 50- and 200-day simple moving averages have completed a bullish golden crossover. Such a pattern typically kickstarts sustained upside in an asset or market.
Can Ethereum hit $5,000?
Present technical patterns suggest room for Ethereum’s breakout run to extend all the way towards the 78.6% Fib mark around $3,872. Conquering this could ultimately pave the way to taking out the previous all-time high of $4,868.
If the bulls manage to secure the $3,872 platform in the coming weeks, experts project just one final stretch upwards to around $6,835. This alignment with the 1.618 Fib extension levels makes it the next logical target before potentially taking a breather.
Also read: Ethereum (ETH) February-End Price Prediction
Of course, if existing market conditions deteriorate once more, Ethereum may yet see a downside towards collector levels at $2,300. However, indicators presently favor the ongoing bullish structure persisting through February.
So with ETH firmly back in recovery mode, early technical clues support the growing narrative of history repeating itself this cycle.