Ethereum price forecast 2023: ETH/USD up 11 percent at the start of the year – buy now?

The new crypto year has started strong. Ethereum buyers can also look forward to a small rally of 11 percent at the beginning of the year after the sharp correction in 2022, raising hopes that the bearish market may now be over. Kryptoszene.de uses technical chart analysis and price forecasts from analysts to analyze whether now might be a good time to buy Ethereum.

Ethereum price rises to $1,330

At the time of publication, Ethereum is trading at around $1,330. With this, ETH/USD has reached its highest level in about a month. However, any bullish news specific to the Ethereum network cannot be blamed for the recovery. Rather, the course takes advantage of the general upward trend that can be seen these days in the traditional financial markets and specifically in the crypto market.

According to the latest figures from coincodex.com, almost all of the top 20 cryptocurrencies by market capitalization have seen a clear upward trend in the first ten days of the year. The biggest winners are Cardano and Solana, which are growing around 30 and even around 40 percent, respectively. Next to Binance Coin and Avax, Ethereum is one of the cryptocurrencies with the strongest trend right now.

Key resistance for ETH/USD is now imminent

But will the course be able to continue this momentum now? Technical analysis on the daily chart shows that ETH/USD is facing significant resistance at current levels. Because the price range between $1,330 and $1,350 has become an important support and resistance zone for Ethereum price since mid-September 2022.

Between mid-September and the end of October, ETH/USD showed a long period of consolidation at these levels before breaking the resistance and an explosive surge to just below $1,680. But then, during the fall of the FTX crypto exchange, there was a sharp drop and a breakdown of the quoted level.

Since then, $1,350 has been a key resistance for ETH/USD. Unless the price manages to break through this price upward the great race is likely to continue. Otherwise, a major correction in the price of Ethereum could be imminent.

A bearish chart pattern of ETH could go below $1,000

The chart analysis shows that, in this case, a very bearish situation could threaten the price of Ethereum in the short term. If ETH/USD fails to break the resistance to the upside, a bearish double top pattern can form along with the similar highs from mid-December 2022.

However, this chart formation will only be valid when ETH/USD breaks through the support zone at $1,165 in the next step and is confirmed to be retested as a new resistance. In this case, the price of Ethereum could fall below the technical price target of $980. This would correspond to a price drop of about 32.5 percent at the current rate.

Ethereum sees a bullish price target at $1,640

However, such a scenario will be invalidated if Ethereum now manages to break through the resistance to the upside or regain support at $1,165 at the latest. There is also another support in the $1,070 area that could provide support for ETH/USD on a correction and lay the groundwork for a bullish chart formation.

Because the daily chart also shows a possible double bottom. In this case, the technical price target for ETH/USD is $1,640. However, the daily chart also shows that the current consolidation phase may last longer before the next price movement actually occurs. Because the Ethereum course formed a symmetrical triangle in May 2022, in which ETH/USD has been for eight months now.

Can Ethereum even explode to $2,700 now?

The symmetrical triangle is viewed as a neutral pattern where an upside breakout is usually as likely as an upward correction. However, since ETH//USD entered this formation from a downtrend, a trend continuation and thus another correction is considered more likely.

A directional decision in this formation can be expected by the end of February 2023 at the latest, when the two converging resistance and support lines meet. However, in most chart patterns, the breakout occurs after 70 to 80 percent of the maximum area in the pattern, so a reversal can occur early.

The technical price target for a breakout to the upside could capture Ethereum to a price level of $2,480 to $2,680 depending on when the resistance is broken. In the best case, this would mean a 100 percent increase in price compared to the current rate.

Worst case scenario: could crash into the $100 range

However, if a downward correction is confirmed by the chart pattern, there is a risk of a significant crash in the Ethereum course as well. Although the technicalical price target in negative territory is not possible but a correction could be announced to levels in hundred dollar ranges.

However, the price movement within the chart pattern can also be interpreted as a bearish head and shoulders formation. In this case, the technical price target is in the path between $150 and $180.

Such a price drop would of course be the worst case scenario for anyone buying Ethereum. However, this is unlikely especially since the ETH/USD rate has already seen an 80 percent correction in the bear market.

Meanwhile, there is also hope for all bulls from a major chart pattern seen on a larger time frame. Since the top of the bull market in 2021, the price has been moving forward in a bullish falling wedge formation. At the end of 2022, however, the price was able to break through the resistance line falling to the upside.

Price forecast sees a bullish year for Ethereum

If this trend continues, Ethereum could possibly reach the formation’s technical price target of around $4,550 as early as this year or 2024, bringing it closer to the all-time highs of 2021. It is this and an increase of about 230 percent on the current price.

Analysts are also making bullish forecasts for the further price trend of Ethereum. Therefore, Digital Base Price estimates that ETH/USD can rise to more than $2,900 this year. A new all-time high for Ethereum is expected by 2026 at the latest.

Dash Trade 2: Last Chance for D2T Tokens in Presale

Shortly before the start of the stock exchange, investors still have the opportunity to secure the D2T token at a preferential price. An overfunding round extended the purchase of D2T at these attractive prices. However, in a few days, the token of the new platform for chart indicators and trading signals will be listed on crypto exchanges and this limited offer will end.

Cryptocurrencies are a highly volatile, unregulated investment product. Your capital is at risk.