The cryptocurrency market has shown signs of resilience despite recent bearish pressure, with some tokens displaying strength. Ethereum, in particular, has been trading within a tight range, leading to a potential buildup of price compression. However, the inability of bulls to exert significant pressure has allowed bears to dominate, potentially trapping the ETH price in a bearish trend. Despite this, there is a possibility of a 200% upswing in the next 3 to 6 months.
One burning question on investors’ minds is whether the ETH price will reach $5000. A recent pullback caused Ethereum to lose a crucial support level it had held since July 2022. Surprisingly, the bearish activity waned without pushing the price significantly lower, indicating that bulls are defending against excessive downward pressure. Historical price patterns suggest that similar consolidation phases have led to a 175% surge, culminating in a new all-time high (ATH) of $4,870.
While market conditions hint at a potential new ATH above $5000, the current price action is unpredictable. Ethereum’s historical price behavior suggests that the token is nearing a point of complete bearish exhaustion. The weekly Relative Strength Index (RSI) is approaching a key support level, reminiscent of previous ATHs in 2018 and 2021. A drop in RSI below 20 could signal a strong rebound, potentially propelling the price upwards.
As Ethereum continues its descent, it may test the local support level at $1580. If bulls step in at this point, we could see a strong upward trend towards a new ATH, possibly exceeding $5000. Therefore, investors should closely monitor Ethereum’s price movements in the coming months for potential bullish opportunities.