The Ethereum (ETH) exchange rate briefly rose above the $3,500 mark, but it failed to stay at new heights.

During the upward movement, Ethereum (ETH) overcame the area of short-term and long-term resistance levels.

Ethereum (ETH) has reached the $3,500 mark.

On the weekly chart, you can see that ETH is trading inside an ascending parallel channel formed in June 2022. The price made two unsuccessful attempts to overcome resistance.

In February 2024, ETH finally broke through the resistance and, as part of the rally, rose above the middle of the long–term range limited by the levels of $1,400 - $4,000.

Yesterday, ETH reached the $3,522 mark, the highest since March 2022.

On the weekly chart, the Relative Strength Index (RSI) shows bullish signals. Traders use the RSI to determine the moment to buy or sell assets.

If the RSI is above 50 and the trend is upward, the bulls remain in the advantage, but if the value is below 50, this indicates the advantage of the bears. Currently, the indicator is above 70 and continues to grow - this is evidence of a bullish trend.

  What do the analysts say?

Some crypto traders and analysts on the social network X (formerly Twitter) believe that this is just the beginning of a larger Ethereum trend.

The chart published by Altstreetbets shows a wave analysis indicating a possible continuation of the ETH price growth to $5,500.

InmortalCrypto predicts that ETH will reach $10,000, while IncomeSharks notes that the goal of $3,500 has already been reached.

Byzantine General has identified two factors that can contribute to the further strengthening of ETH.

"Everyone has already invested in ETH, it has nowhere else to grow." No, my friend. Only a small part of this Twitter community actually has significant investments in ETH. This is, in general, nothing," he said.

ETH Price Forecast: Now at $4,000

Wave analysis and RSI signals on the daily chart confirm the further growth of ETH. Technical analysts use Elliott wave theory to determine the direction of a trend by analyzing recurring long-term price patterns and investor psychology.

The most likely scenario assumes that ETH is in the third wave of a five-wave upward movement. At the moment, the length of the third wave is 1.61 times the length of the first, which indicates a potential peak.

However, the daily RSI continues to grow and shows no signs of a reversal.

Thus, if ETH overcomes the resistance at $3,640, a further 35% increase is possible to the next resistance at $4,550, which will provide a ratio of waves 1 and 3 in the amount of 1:2.61.

Despite the bullish forecast, failure to overcome the $3,640 level could lead to a 13% decline to the nearest support at $3,000, completing the fourth wave.