Is Ethereum (ETH) Ready For A Monster Move In January 2024?

Ethereum

In a recent post on X, Sassal, an independent Ethereum educator, is doubling down on Ethereum (ETH). The angel investor said that based on current market sentiment, there are signals that the “death of ETH” narrative is losing steam.

This is a reason, in Sassal’s view, to buy even more ETH ahead of the expected bull run.

Ethereum Bulls Confident, ETH Resistance At $2,400

With the bullish stance, the independent Ethereum educator appears to be convinced that Ethereum’s fundamentals are strong. More importantly, the analyst is confident that the network is well-positioned to capitalize on the growing demand for protocols, including those offering decentralized finance (defi) and non-fungible token minting services. 

Thus far, Ethereum, despite the relatively sluggish performance compared to meme coins like BONK or PEPE, remains the second most valuable network only behind Bitcoin.

From the candlestick arrangement in the daily chart, the coin is within a bullish formation. 

The coin rallied by nearly 60%, topping at December 2023 at around $2,400 before pulling back to spot rates. Even with the cool-off, buyers still have the upper hand. 

Ethereum price trending upward on the daily chart | Source: ETHUSDT on Binance, TradingView
Ethereum price trending upward on the daily chart | Source: ETHUSDT on Binance, TradingView

When writing on December 12, ETH prices found support at the dynamic reaction line, the 20-day moving average. It is also trading above the $2,100 support line, marking July 2023 highs. Accordingly, it means the bullish breakout formation of early December 2023 is valid.

This move could anchor optimistic buyers targeting $3,000 and even 2021 highs of around $5,000 in the days ahead.

Network Is Upgrading: Will This Drive Prices Even Higher In January 2024?

The likelihood of trend continuation in 2024 also stems from plans by the platform’s developers to enhance performance and scalability. With Ethereum 2.0 on, developers have been working on layer-2 scaling options like Arbitrum and Optimism to relieve the mainnet.

However, going forward, on-chain scaling solutions like Sharding, where the network will be fragmented into units called “shards” that are interconnected, will be rolled out. 

Echoing Sassal’s sentiment, another commentator on the X post noted that December and January have historically been “monster months” for Ethereum in previous bull markets.

This suggests that even if Ethereum prices have not rallied by triple digits like some meme coins or even outperformed Solana (SOL), the coin could be poised for a significant price rally in the coming months.

Still, how ETH prices will evolve in the upcoming sessions remains to be seen. As it is, $2,500 remains to be a key reaction point that if broken could trigger more demand.

Feature image from Canva, chart from TradingView

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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