Ethereum Weekly RSI Resets: Is a Bounce to $4,000 Imminent?

After weeks of consolidation, ethereum (eth) appears to be breaking higher from its $3,200 to $3,500 trading range. Bullish technical indicators on the eth chart, along with strengthening Fundamentals suggest significant upside potential for the second-largest cryptocurrency by market cap.

Is ethereum aiming for a $4,000 target?

Last month, ethereum attempted to break through the critical $4,000 resistance level twice but failed both times. Between December 16 and 19, eth experienced a sharp decline, falling from $4,000 to just $3,100, a drop of more than 20% in three days.

Since December 19, eth has remained range-bound, fluctuating between $3,200 and $3,500, raising concerns about a possible drop below the $3,000 level. However, eth is showing signs of resurgence today, breaking out of a symmetrical triangle pattern, with $4,000 emerging as the first major resistance level to overcome.

Cold Blooded Shiller Cryptocurrency Trader and Analyst <a target="_blank" href="https://x.com/ColdBloodShill/status/1875210680795898130″ target=”_blank” rel=”noopener nofollow”>noted that ethereum's weekly Relative Strength Index (RSI) has reset, which could provide the impetus needed to push eth past $4,000. The analyst added that if eth surpasses $3,500, they plan to increase their spot holdings.

For the uninitiated, a weekly RSI reset occurs when the RSI, a momentum indicator, retraces from overbought or oversold levels towards its neutral zone, usually indicating that a potential trend reversal or consolidation is occurring. In the context of ethereum, this reset could indicate a reduction in selling pressure and a bounce opportunity.

Experienced cryptocurrency trader TraderSZ echoed similar sentiments. In a post on x, the analyst shared weekly and monthly charts for ethereum, suggesting that a bullish breakout may be imminent.

Another prominent cryptocurrency analyst, known as Immortal, weighed in on ethereum's potential price trajectory. In its analysis, Immortal compared the current eth price action to the first quarter of 2024, highlighting the similarities between the two periods.

According to the chart below, January typically serves as an accumulation phase, while February and March tend to experience parabolic price movements. If eth follows a similar pattern in 2025, it could target $5,300.

Will ethereum's Rise Trigger an Alt Season?

While bitcoin (btc) witnessed unprecedented price surges in 2024, briefly touching six-figure territory, ethereum has yet to experience comparable explosive growth. The current all-time high (ATH) of eth dates back to November 2021. underlining that eth has lagged behind btc during this cycle.

However, recent market trends indicate that eth may finally be gaining ground against btc, as evidenced by the constantly increasing eth/btc ratio. Additionally, the domain of bitcoin appears. ready for a drop after forming a lower high on the weekly chart.

This change could pave the way for the long-awaited altseason, providing a boost for eth and other altcoins. At press time, eth is trading at $3,576, up 3.2% in the last 24 hours.

Featured image from Unsplash.com, x charts and TradingView.com