In a recent mail On X, Sassal, an independent ethereum educator, is doubling down on ethereum (eth). The angel investor said that based on current market sentiment, there are signs that the “death of eth” narrative is losing steam.
This is a reason, in Sassal's opinion, to buy even more eth before the expected bull run.
ethereum Bulls Confident, eth Resistance at $2,400
With his bullish stance, the independent ethereum educator seems convinced that ethereum's fundamentals are solid. More importantly, the analyst is confident that the network is well positioned to capitalize on growing demand for protocols, including those offering decentralized finance (defi) and non-fungible token minting services.
So far, ethereum, despite relatively slow performance compared to meme coins like BONK or PEPE, remains the second most valuable network only behind bitcoin.
Based on the arrangement of the candles on the daily chart, the coin is inside a bullish formation.
The currency rallied nearly 60%, hitting a December 2023 high of around $2,400 before returning to spot rates. Even with the cooling, buyers still have the advantage.
Writing on December 12, eth prices found support at the dynamic reaction line, the 20-day moving average. It is also trading above the $2,100 support line, marking July 2023 highs. Consequently, it means that the bullish breakout formation from early December 2023 is valid.
This move could anchor bullish buyers targeting $3,000 and even 2021 highs around $5,000 in the coming days.
The network is being updated: Will this increase prices further in January 2024?
The likelihood of the trend continuing in 2024 is also due to the platform developers' plans to improve performance and scalability. With ethereum 2.0 enabled, developers have been working on layer 2 scaling options like Arbitrum and Optimism to relieve the mainnet.
However, in the future, chain scaling solutions like Sharding will be implemented, where the network will be fragmented into units called “shards” that are interconnected.
Echoing Sassal's sentiment, another X post commenter noted that December and January have historically been “monster months” for ethereum in previous bull markets.
This suggests that even if ethereum prices haven't surged triple digits like some meme coins or even surpassed Solana (SOL), the coin could be poised for a major price rally in the coming months.
Still, it remains to be seen how eth prices will evolve in the coming sessions. As things stand, $2,500 remains a key reaction point that, if broken, could trigger further demand.
Featured image from Canva, TradingView chart
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