Is Ethereum (ETH) On The Brink Of A ‘Big Break’? (Analysts opine)

TL;DR

Ethereum (ETH) fell below $2,400 but may see a rally, with predictions ranging from a near-term rise to $3,000 to a new high of $6,000 sometime in 2025. Metrics like the net exchange flow and RSI point to reduced selling pressure and potential buying opportunities for the asset. What could be next?

Despite not reaching a new all-time high, Ethereum (ETH) witnessed a positive start to 2024, with the price breaking above $4,000 in mid-March. However, it experienced greater volatility in the following months, eventually settling at the current $2,400 (according to CoinGecko data), representing a 5% decline on a weekly basis.

ETH price, Source: CoinGecko

The asset has been the subject of numerous price predictions recently, with some industry participants anticipating an upward move in the near future. The Cryptomist (an X-user with over 130,000 followers) claimed that ETH could drop to $2,330 before heading for a “big break” towards $3,000. Recall that the price fell below this level today (September 4), hitting a local low of around $2,318.

X user Yoddha also envisioned good days ahead for the bulls, arguing that “ETH is cooking something big right now.” The analyst believes that the price of the token has fallen into a zone of “strong demand”, which could be crucial for a potential inbound bounce.

Mags was even more bullish, seeing ETH jump to a new ATH of nearly $6,000 in 2025. In his view, the prediction could come true if the price holds above a trendline important/bullish or in other words it doesn’t fall below $2300. .

What do the metrics suggest?

Ethereum’s net exchange flow also indicates that the token’s valuation could rise soon. Over the past month, outflows have mostly outpaced inflows, with two large red candles seen at the end of August.

This indicates a shift from centralized exchanges to self-custody methods and could be seen as a bullish sign as it reduces immediate selling pressure.

The next indicator we will look at is the Relative Strength Index (RSI). It is a momentum oscillator used to measure the magnitude of recent price changes to assess overbought or oversold conditions. The RSI ranges from 0 to 100, with readings below 30 suggesting the asset could be oversold and a potential buying opportunity.

The ratio dropped below this zone in late August, currently standing at around 36.

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