Ethereum’s ‘Final Dip’ Could Be Toward $2.5K Before ETH Trip To New All-Time High – Analyst

The price of Ether (ETH) has struggled to gain momentum for months, with the altcoin up 1% in October compared to Bitcoin (BTC)'s 14% return.

A lack of interest from retail and institutional investors is weighing on Ether's price, with the ETH ETF seeing $4.4 million in inflows on Oct. 30, compared to $893 million for the BTC ETF. It has a 0.49% share relative to its direct competitor.

However, the altcoin's bearish days may be numbered, according to technical analyst Ether's final dip is over and greener days are ahead.

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ETH's “last dip” was at $2,500.

Poseidon, an independent trader, believes that Ethereum has already met “the end” last weekend. The altcoin fell to $2,382 but immediately recovered to over $2,500 within 48 hours. The trader explained that ETH retook the 200-day EMA level in the 8-hour time frame and explained that the decline over the weekend was a “bear trap/divergence”.

Poseidon added,

“If it holds above $2600, I will add more long positions. I still believe this region will eventually rise to the top.

Based on the analysis, Ethereum is looking at an 88% return on investment (ROI) from $2,500, and will soon reach a new high.

Meanwhile, the ETH/BTC chart is also approaching a critical level as the token reaches its lifetime control point (POC). MaxBecauseBTC, an anonymous crypto analyst, highlighted that the ETH/BTC chart is reaching the territory where most transactions have occurred since 2016. Therefore, prices are a key support area that can be reversed in a sharp trend.

RELATED: 3 Signs Ethereum's Price Is Preparing to Rebound to $6K

Ethereum is chasing the 200-EMA reversal on the daily chart

From a technical perspective, Ether continues to move higher from the ascending trendline support, and there is another chance to test the $2,550 to $2,600 range. On the daily chart, the price is forming an ascending triangle, which is a bullish pattern.

At the $2,800 overhead resistance, ETH's immediate target will be a reversal of the 100-day and 200-day EMA levels to increase its price action.

The relative strength index, or RSI, is above 50 but remains below the 70 mark, which means the asset is not overbought but there is a healthy dominance from buyers.

Prices are likely to move volatile over the next few days as they rally around Bollinger Bands, but ETH could immediately move higher if it closes the daily position above $2,800.

Related: Ethereum Returns 42% Flow From Solana – DeFi Report

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.