Ethereum (ETH) Price Prediction: Will ETH Price Reach $5000?

The crypto markets seem to have digested the bearish pressure as some of the tokens demonstrate strength. The Ethereum price remains accumulated within a narrow range

The crypto markets appear to have absorbed the bearish pressure as some of the tokens are displaying strength. The Ethereum price remains absorbed within a narrow range, indicating an excessive price compression. As a result, the bulls are unable to exert pressure, as it could quickly diminish with the bears holding substantial dominance. Consequently, the ETH price could become entrapped in a bearish cycle. However, from a broader viewpoint, the token has set a bear trap, which might propel a 200% surge in the next 3 to 6 months.

Will ETH Price Reach $5000?

The recent pullback in the ETH price has caused the token to lose one of its crucial supports, maintained since July 2022. Following the decline, the bearish activity diminished without attempting to push the price further down toward $1500. This signifies the bulls' persistence in preventing excessive price deterioration. Furthermore, historical price patterns indicate that such prolonged consolidation has occurred before, eventually triggering a 175% surge to establish a new ATH at $4,870.

With similar trading conditions, the ETH price is expected to rise and set a new ATH, likely exceeding $5000. However, the present market dynamics showcase varied price movements.

Historical price action of Ethereum suggests the price is nearing the final stages of a bearish exhaustion phase. The weekly RSI is on the verge of reaching the lower threshold, a scenario that unfolded after the price reached ATH in 2018 and 2021. The decline in RSI coincided with increased bearish activity, guiding the token toward the bottom of the descending trend. Currently, the ETH price appears to be closely approaching the formation of bottoms, potentially around $1500 as RSI stands at 33, and a drop below 20 could ignite a strong rebound.

Hence, the Ethereum price might continue its descending trend and test the local support at $1580. At this level, the bulls are expected to initiate a rebound and drive a strong ascending trend toward a new ATH, possibly above $5000.