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- ETH price is on a massive bull run since the beginning of this year and has also been racking ATHs. Quite recently, on 10th April, ATH smashed its way to the upside to form another ATH of $2198
- The epic surge can further be confirmed as ETH broke out of the ascending triangle pattern, which we mentioned in our last analysis
The price action of ETH on a daily time frame appears to be extremely convincing. We are currently experiencing a big bull run, and ETH is not planning to slow down anytime sooner. When we pay close attention to the resistance line of $2148, we can conclude that it has been tested quite often in the past few days. It has been pretty much dragging itself lately, which is another bullish signal that ETH price might still be in the zone to break another ATH. The logic behind this is the more touchpoints we get on the resistance line, the weaker it tends to get. Another notable signal that ETH gave us after breaking the ascending triangle pattern is retesting that line as a support level.
BEARISH DIVERGENCE COULD SUGGEST A MINOR PULLBACK for ETH Price
Even though ETH price has been in a substantial rally, we also need to get ready for the minor setbacks. The price of ETH is forming higher highs, whereas oscillators such as RSI and MACD are forming higher lows. This could trigger a minor selloff pushing the ETH price downwards to the support level of $1967 (50 EMA). This scenario is most likely to happen if the price of ETH fails to sustain above the $2160 level.
RSI is currently at the 63 level, which suggests that it is in the overbought zone. On the other hand, the MACD is hovering at the 26 level. We can also see the MACD line cross from above to below the signal line. This means that the indicator is giving signs of temporary bearishness.
CONCLUSION
Whereas the price action implies huge bullish signals, the oscillators suggest a minor setback. However, a minor correction would be healthy before ETH embarks its new hike towards breaking another ATH. ETH price is expected to reach the target of $2500 (1.618 FIB) in the long term. ETH has quite a lot of potential if considered a long-term investment. The transactions of ETH are much faster in comparison to BTC. If you plan to invest in ETH, you are still in the early days. ETH’s ultimate goal is to use blockchain networks to replace internet third parties, which gives this cryptocurrency an edge over BTC.
SUPPORT : $1967, $2015 and $2072
RESISTANCE : $2198, $2150 (52 Week High) and $2098
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
