Ethereum may be on the verge of a major breakout, with forecasts suggesting it could hit $3,000 next month. According to CoinCheckup, a popular crypto market forecasting platform, Ethereum should rise 51% in the next three months. With such a positive forecast, the current price drop of Ethereum could very well be a short-term problem against the impending rally.
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Short term analysis and market indicators
A crypto analyst, Michael van de Poppe, has been monitoring Ethereum’s recent performance and believes it could soon turn into an uptrend. Poppe shed light on the fact that ETH was trading 6.14% below its estimated price over the next month.
Despite this, he thinks there is an 80% chance that ETH will rise above $3,000 in September. Comparing the current market to previous cycles, he recalls that the last time the altcoin saw a sustained loss was before the bear market in 2018.
There is only one occasion where $ETH has created more than three monthly candles in red.
It was the start of the bear market in 2018.
I think there is a chance of that $ETH above $3,000 in September is greater than 80%. pic.twitter.com/deUgSGfqkR
— Michaël van de Poppe (@CryptoMichNL) August 17, 2024
ETH found support near $2,500 on the weekly charts, a level normally seen before major recoveries. Another metric supporting the chances of price reversal is the stochastic RSI, which is now in oversold territory. If ETH were to manage to free itself from the $3,000 resistance and show at least some decent improvements in demand trends, the rally would be imminent.
Demand trends and investor sentiment
While the indicators are technically quite promising, not everything is rainbow colored when it comes to Ethereum. The largest altcoin has undergone a downward trend in demand, reflecting the declining weekly RSI. For Poppe’s projection to become reality, this downward trend must be denied. However, there will also be encouraging signs. US investors are showing increasing interest in ETH, highlighted by the positive Coinbase Premium Index.
Even speculators in the futures markets are optimistic, with the Taker Buyer Sell Ratio indicating that there is more buying than selling. This sentiment from traders indicates that the mood on the market is such that Ether will rise as a result.
Ethereum: Long-Term Growth Projections
However, looking beyond the short-term moves, CoinCheckup’s predictions are overwhelmingly positive for Ethereum in the long term. It has predicted cryptocurrency will rise by 120% in the next six months and by 145% in the following year. That essentially means that the current price drop could only be a blip before Ethereum rises significantly.
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These independent predictions now show the great potential of Ethereum. It will be a good opportunity for investors to increase their positions in ETH if current market conditions play out in line with the given forecasts.
Current Ethereum price levels, supported by these technical indicators and optimistic investor sentiment, have the potential to rise above $3,000. Of course, improving trends in demand and network activity will be hurdles to climb. However, the long-term prospects for this cryptocurrency are promising. Investors should keep themselves informed and watch for signs that could confirm the predicted rally.
Featured image from Pexels, chart from TradingView