Ethereum Price Prediction: ETH Jumps 2.7% After Dropping Below $3K As This New Solana Layer-2 Token Races Past $10 Million In Presale

Ethereum Price Surges in Bullish Reversal

In the past 24 hours, Ethereum's price has witnessed a remarkable 2.7% surge, reaching $3,240 as of 04:34 a.m. EST. This uptrend is coupled with a 170% increase in trading volume, totaling $40.5 billion.

Ethereum Rebounds from $3,000 Dip

Amidst investors' concerns, Ethereum briefly dipped below $3,000 on January 13th. However, the cryptocurrency has since rebounded, reclaiming its position above this critical level.

Bullish Trend Reversal in Sight

Ethereum's price has been oscillating within a downtrend, failing to maintain key support levels near $3,300. This breakdown aligns with a "lower high" formation, indicating waning bullish momentum. The breach of horizontal support at $3,200 pushed the price to a recent low of $2,900.

Despite a recent upward trend from below $3,000, the overall trend remains weak as the price consolidates near its previous support, which now presents resistance.

Technical Analysis

As a result of the downtrend, Ethereum's price has fallen below both the 50-day and 200-day Simple Moving Averages (SMAs), which serve as long-term resistance levels at $3,336 and $3,504, respectively. The Relative Strength Index (RSI) currently hovers around 51, slightly above the 50-midline level, indicating potential for further upside movement.

ETH Price Prediction

The recent price action and lack of strong bullish momentum suggest that Ethereum may encounter challenges in reclaiming $3,300 in the immediate future. A failure to break above this level could lead to a retest of $3,000 or a further decline towards $2,800.

Conversely, if the RSI continues to rise above the 50-midline level and Ethereum surpasses the support level of $3,200, the price may continue to rebound, with the 200-day SMA acting as the next target.