Ethereum (ETH) New Yearly High Crypto Analysis of December 6, 2023

The price of Ethereum has reached a new yearly high. Let’s look at the upcoming outlook for ETH.

Ethereum (ETH) Situation

After reaching its highest level, the Ethereum price reached the threshold of $2,300. This price level had not been seen since May 2022. Consequently, the bullish hypothesis mentioned in the analysis of November 22 seems to be materializing. Ethereum recorded an increase of about 13% over the month of November and starts the last month of the year with an increase of more than 11%. This recent surge, partly due to the rise in Bitcoin, has caused a bullish gap in the futures contracts between $2,220 and $2,120. This phenomenon is monitored by traders, as it constitutes an important technical area.

Today, Ethereum is trading around $2,280. It is above its 50 and 200-day moving averages, which continue to trend upwards, thus supporting the medium and long-term bullish trend of Ethereum. On the side of oscillators, they still indicate a bullish momentum. However, a daily divergence is intensifying on the RSI. This suggests a period of consolidation or correction to come.

The current technical analysis was carried out in collaboration with Elie FT, an avid investor and trader in the cryptocurrency market. Today, he is a trainer at Family Trading, a community of thousands of proprietary traders active since 2017. Here you will find Live sessions, educational content, and mutual assistance on financial markets in a professional and warm atmosphere.

Possible Scenarios for Ethereum (ETH) Price

If the price of Ethereum exceeds and holds above $2,300, we could anticipate a bullish continuation to the levels of $2,500 – $2,700. The next resistance to consider if the uptrend continues would be the threshold of $3,000. At this point, that would represent a rise close to +32%.

If the price of Ethereum fails to break through the $2,300, we could envision a return close to the $2,100 level. The next support to consider, if the bearish movement persists, would be the psychological threshold of $2,000. At this stage, that would represent a fall close to -12%.

Conclusion

Like the leading cryptocurrency, Ethereum continues to perform by reaching a new yearly high. Thus, the bullish trend of ETH is intensifying. However, with such a rise in the cryptocurrency market, a phase of consolidation or correction is not ruled out. Therefore, it is imperative to closely monitor the price reaction at different key levels to confirm or refute the current hypotheses. Be wary of potential “fake outs” and “market squeezes” in each situation. Moreover, let’s not forget that these scenarios are based solely on technical analysis. The price of cryptocurrencies can evolve more or less quickly, according to other, more fundamental factors.