Ethereum

Ether is setting up for a rally above the $3,000 psychological mark, but analysts warn of more potential downside ahead of the breakout.
<h2 id="ether-price-looks-ready-to-tackle-3-000">Ether price looks ready to tackle $3,000</h2>
Ether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/ethereum-price" rel="noopener noreferrer nofollow" target="null" text="null" title="null">ETH</a>) price could be gearing up for a rally above $3,000, according to a technical chart pattern emerging on the daily chart.
The analyst <a data-ct-non-breakable="null" href="https://x.com/MikybullCrypto/status/1846869046060286037/photo/1" rel="noopener noreferrer nofollow" target="null" text="null" title="null">wrote</a> in an Oct. 17 X post:
<blockquote>
 “ETH inverse [head-and-shoulder] reversal price pattern has a short-term price target of $3,000.”
</blockquote>
<figure><img alt="Odds of Ethereum price rally to $3K increase, but a few red flags remain" src="https://s3.cointelegraph.com/uploads/2024-10/01929b02-37dd-749c-9f5d-475ecdd08205" title="">
 <figcaption style="text-align: center;">
 ETH/USD, 1-day chart, inverse head-and-shoulder pattern. Source: Mikybull
 </figcaption>
</figure>
The head-and-shoulder pattern is used by technical analysts as a signal that forms at the end of a downtrend, marking a bullish price reversal.
Others predict that Ether’s new all-time high could occur during the first quarter of 2025.
This puts Ether price on track to $4,000 before the end of the year, according to technical analysis shared by popular crypto trader Daink, who <a data-ct-non-breakable="null" href="https://x.com/TraderDaink/status/1846899645156323817/photo/1" rel="noopener noreferrer nofollow" target="null" text="null" title="null">wrote</a> in an Oct. 17 X post:
<blockquote>
 “All-time high will come in 2025 Q1, but for now I like $4,000.”
</blockquote>
<figure><img alt="Odds of Ethereum price rally to $3K increase, but a few red flags remain" src="https://s3.cointelegraph.com/uploads/2024-10/01929b03-67c5-7e12-83a1-1dbecb88ef4a" title="">
 <figcaption style="text-align: center;">
 ETH/USDT, 1-day chart. Source: Daink
 </figcaption>
</figure>
Despite the optimistic predictions, <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ether-price-subdued-l1-wars-analyst" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Ether remains stuck</a> in a seven-month downtrend, falling over 36% from its yearly high of $4,111 in March 2024.&nbsp;
The sluggish price action could be attributed to Ethereum losing ground in the battle for <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/how-layer-1-blockchains-can-solve-the-blockchain-trilemma" rel="noopener noreferrer nofollow" target="null" text="null" title="null">layer-1 (L1) blockchain</a> innovation, according to pseudonymous crypto analyst Ignas.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ether-price-crashed-30-the-last-time-this-indicator-peaked-eth-dump-ahead" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Ethereum price crashes often follow ETH open interest peaks — Will history repeat?</a>
<h2 id="a-sell-off-to-2-400-could-happen-first">A sell off to $2,400 could happen first</h2>
Not all traders are optimistic about Ether price’s short-term trajectory.
A technical pattern on the one-hour chart suggests that ETH could see a correction to $2,400, according to crypto trader Justin Bennet.&nbsp;
Bennet wrote in an Oct. 17 X <a data-ct-non-breakable="null" href="https://x.com/JustinBennettFX/status/1846686777576509707/photo/1" rel="noopener noreferrer nofollow" target="null" text="null" title="null">post</a>:
<blockquote>
 “It’s not a pattern I trade, but $ETH could be forming a diamond reversal pattern. The objective is $2,485 if it confirms with a close below support.”
</blockquote>
<figure><img alt="Odds of Ethereum price rally to $3K increase, but a few red flags remain" src="https://s3.cointelegraph.com/uploads/2024-10/01929b03-f2b6-7299-a628-c2949da7b8ca" title="">
 <figcaption style="text-align: center;">
 ETH/USD, 1-hour chart. Source: Justin Bennett
 </figcaption>
</figure>
Ether’s relative strength index (RSI) also suggests a potential correction. On the daily chart, Ether’s RSI stands at 59, which is above the 14-day average of 50.
The last time Ether’s RSI rose to 60, ETH price saw a six-day correction, with the RSI bottoming at 39, as Ether found its bottom at $2,309, on Oct. 24, according to Coinbase <a data-ct-non-breakable="null" href="https://www.tradingview.com/chart/3Z94myyP/?symbol=COINBASE%3AETHUSD" rel="noopener noreferrer nofollow" target="null" text="null" title="null">data</a>.
<figure><img alt="Analysis, Markets, Price Analysis, Tech Analysis, Ether Price, Ethereum Price" src="https://s3.cointelegraph.com/uploads/2024-10/01929fec-8e63-75a3-8b86-d507ca798726" title="">
 <figcaption style="text-align: center;">
 ETH/USD, 1-day chart, RSI. Source: TradingView
 </figcaption>
</figure>
The RSI is a popular momentum indicator used to measure whether an asset is oversold or overbought based on the magnitude of recent price changes.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/two-ethereum-entities-produced-88-blocks-centralization-concerns" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Two builders produce 88% of Ethereum blocks in October, raising concerns</a>

Odds of Ethereum price rally to $3K increase, but a few red flags remain

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