Can ETH Make a New ATH?

Our baseline scenario was that ETH would hit the $3,000 a few months after consolidating and then a few months after breaking above that consolidation rectangle shown in the chart.

However, this consolidation period lasted much less than expected and the token has moved rapidly toward the $3,000

after breaking out of the rectangle and pivoting up. Also, the token has been moving up much faster than expected. In fact, ETH moved from oversold to overbought in just a month.

The fact that ETH hit overbought so quickly is not an indication that the uptrend has exhausted its strength. In fact, it is just an early signal of how strong this reversal has been

Considering these early signals and the strength with which ETH is rising. We could now revisit that $3,000 forecast.

Can ETH Make a New ATH?Two key resistances are the most relevant to watch as ETH continues to climb. The first is the 200-day exponential moving average (EMA). ETH just tagged that indicator today and it has retreated from it already.

This indicator, which is currently trading at $2,450, has been acting as a dynamic resistance since March 2023. Moreover, selling pressure above this level will likely be high. Hence, buyers need to show enough commitment to the rally to push through that important threshold.

Another resistance to pay attention to is the 2021 all-time high (ATH) at $2,870. After having tested this resistance zone on several occasions in August and September, the price ultimately broke through it in early October.

This move was largely driven by a massive wave of liquidity that had been building at this level for several months. Once this liquidity was used up, the price pulled back slightly, retesting the lower boundary of this wave at around $2,600.

However, this pullback was short-lived as sellers emerged above $2,870, aiming to defend the 2021 ATH. As a result, the price bounced back up, suggesting that buyers are still in control and prepared to defend this crucial price point.

From this perspective, the 2021 ATH serves as a strong support level, which could pose difficulties for sellers in continuing to exert downward pressure on the token.

To sum up, as ETH continues to rise, two key resistances will be crucial to watch. The 200-day EMA, currently at $2,450, is a dynamic resistance with high selling pressure. On the other hand, the 2021 ATH at $2,870 is a strong support level that sellers may find difficult to overcome. The strength of this move could propel ETH to new highs.