Key Points
- Ethereum [ETH] regained its December range-lows and is showing signs of potential extended recovery.
- Positive Q1 seasonality trends could suggest strong performance for ETH, with possible targets of $3.8k, $4k, and $4.1k.
Ethereum [ETH] has demonstrated a promising recovery, bouncing back and reclaiming its previous support level of $3.5k.
On Friday, the cryptocurrency rallied by 4%, marking a notable rebound from its December lows. This could potentially signal an extended recovery in the coming days.
ETH’s Performance and Outlook
During the recent holiday sell-offs, Ethereum’s mindshare hit a 12-month low. Despite this, it managed to maintain a narrow consolidation above $3,300 in late December, after declining from over $4k.
On the 12-hour chart, ETH rose above key moving averages of 20-day, 50-day, and 100-day EMA. The Friday breakout pump closed above $3.6k, flipping the market structure bullish. This could pave the way for an extended recovery in the short term.
Potential Targets
The immediate bullish targets for ETH are the mid-range of $3.8K and the upper channel of $4k. The 12-hour chart RSI and CMF were above key median levels, indicating increased demand and capital inflows.
If the positive trend continues, ETH could climb to $3.8k, $4k, or even higher. However, a bearish outlook would be confirmed if ETH falls below $3.5K.
Q1 has historically been a strong period for ETH, with average gains of 83%. Coinglass data shows that January and March have been the best performing months of Q1, with 21% and 22% returns, respectively.
If this pattern repeats, ETH could experience significant growth in January. The monthly liquidation heatmap shows that the key upside levels are $3.8k, $4k, and $4.1k, with the crucial downside level appearing to be $3.3k.
In the event of a liquidity sweep-driven rally, $3.8k, $4k, and $3.3k could potentially be hit. The latest ETH breakout could set the stage for extended growth if seasonality trends repeat, making $3.8k and $4k achievable targets. However, a sharp pullback could ease at the key December short-term support of $3.3k.
Please note that this information does not constitute financial, investment, trading, or other types of advice.
