Ethereum Price Prediction: RSI Historical Patterns Favor $10K ETH Target

Ethereum (ETH) is once again surpassing the $4,700 mark this morning as altcoin season keeps marching on.

BNB Coin (BNB) has ripped through the $1,300 level, and ETH could soon hit $5,000 as trading volumes have surged by 42% in the past 24 hours, currently accounting for 8% of the token’s circulating supply.

A weaker U.S. dollar resulting from the ongoing U.S. government shutdown and this month’s expected second interest rate cut, to be implemented by the Federal Reserve, is favoring a bullish Ethereum price prediction.

Stablecoin Reserves on Ethereum – Source: DeFi Llama

Moreover, on-chain metrics keep hitting new all-time highs as ecosystem growth is accelerating. In this regard, stablecoin reserves on Ethereum recently climbed to a new record of $162 billion as Wall Street continues to take an interest in cryptos.

As the largest network in the decentralized finance (DeFi) and real-world assets (RWAs) markets, Ethereum is uniquely positioned to capitalize on increased institutional adoption of blockchain technology and cryptos.

ETF Inflows Near $800M in ‘Uptober’

Ethereum-linked exchange-traded funds (ETFs) reflect investors’ growing interest in this token as these vehicles have brought in nearly $800 million since ‘Uptober’ started, climbing to a total of $14.1 billion in assets under management (AUM).

The Pectra upgrade was critical to propel ETH, as it alleviated the market’s concerns about scalability and high fees, at least to some extent.

An increase in the number of blobs (datasets) per block and the possibility of making the token deflationary through ongoing burns of the network’s gas fees are just some of the benefits brought on by Pectra.

Ethereum remains the most decentralized network in the smart contracts platform with a large number of independent validators. Hence, it will likely be the go-to alternative for companies looking to explore the world of possibilities that blockchain technology offers.

Is $10K Possible? RSI Readings Say ‘Yes’

Now, looking at the weekly chart for ETH, we can see that the token is hitting a key resistance as it is approaching its recent all-time high.

ETH/USD Weekly Chart (Coinbase) – Source: TradingView

This could be a make-or-break moment for the rally, but the stage looks set for a bullish breakout as market conditions remain highly favorable for cryptos.

Lower rates will prompt investors to chase yields by pouring money into riskier asset classes, while a weaker dollar results in higher valuations for cryptos as a whole. Moreover, altcoin season just started, and ETH is the top token in this category.

The Relative Strength Index (RSI) provides some interesting guidance to determine which stage of the cycle we are in right now.

The last time ETH made a huge climb, from 2020 to 2021, this momentum oscillator initially spiked to overbought territory, and the RSI reached an extreme level of 91 during the first leg up. Later on, the RSI started to make a series of lower highs, but the price kept climbing – also known as a bearish divergence.

Interestingly, we have not yet seen ETH’s RSI in the weekly chart climbing to overbought during this leg up. Hence, if we get a move above $5,000 in these next few days and this indicator hits levels ranging from 80 to 90, that should not be considered a sign of a top.

Instead, it could mark the beginning of Ethereum’s rally to much higher ground – possibly to $10,000 if we use the price channel shown in the chart to draft a trajectory for ETH. Worrying about an overheated market at this point seems unfounded, as this token could have much more room to go based on these historical patterns.