Ethereum Price Prediction: Triple Bottom at $2,750 Sets Stage for a Move to $4K

Ethereum (ETH) has gone up by nearly 2% in the past 24 hours after hitting a key support level at $2,750, at which buying interest has been strong in the past few sessions.

The top altcoin is heading to wrap up the year in negative territory. Meanwhile, in the past 30 days, ETH has retreated by 2% as monthly seasonality shows that December has typically been bearish for the token.

Exchange-traded funds (ETFs) reflect the market’s persistent bearish attitude, as ETH-linked vehicles have seen outflows in 11 out of the last 12 trading sessions.

Although withdrawals have been below the $100 million mark most of those days, this still shows that market participants have kept selling rather than buying, which indicates distribution instead of accumulation.

That said, January has typically been a good month for ETH as indicated by historical trends. Data from CoinGlass shows that, in 5 out of the last 9 years, the token has delivered strong gains.

Winning months have yielded between 32% and 78%, while losing months have seen milder declines ranging from 0.1% to 27%.

Hence, ETH can either make a strong comeback or retreat to the low 2000s in the next few weeks.

The latest price action seems to favor a bullish outlook at the time, and could be setting the stage for a positive month. If history repeats, a triple bottom pattern could push ETH to $4,000 or even $5,000.

ETH Needs to Climb Above $3,300 to Start Rallying

Looking at the daily chart, ETH has bounced three times off the $2,750 level, meaning an early signal of a triple bottom.

ETH/USD Daily Chart (Kraken) – Source: TradingView

This pattern has not yet been confirmed as ETH needs to climb above $3,300 to fully reverse its downtrend.

If that happens, that would confirm an upcoming move toward the $4,000 area first and then to $5,000 if positive momentum accelerates. The Relative Strength Index (RSI) shows a bullish divergence as the oscillator has been rising even though the price has dropped multiple times to the same support area.

The chart outlines the game plan for January. Entering at $3,300 after a confirmed breakout would offer the highest upside potential for a swing trade. Meanwhile, traders could refine their stop-loss by catching closer support areas in lower time frames to increase their risk-reward ratio.

Lower Time Frame Shows Similar Bulllish Structure

Moving to a lower time frame, the hourly chart shows that ETH has been finding strong support at $2,900 in the past few sessions and has managed to break out of a descending triangle setup.

ETH/USD Hourly Chart (Kraken) – Source: TradingView

This could set the stage for a move toward $3,075 for the first time in more than a week and then to around $3,160 if the rally keeps going.

The price has already retested its former trend line resistance from above and bounced off that mark strongly. Trading volumes are still relatively low as they stand at $18 billion, accounting for just 5% of the token’s circulating market cap.

If volumes pick up at the beginning of January as the market comes back from the holidays, the odds favor a bullish outlook as seasonality is positive this month, while both higher and lower time frames exhibit bullish setups.