The price of Ethereum (ETH) has continued to decline since hitting a high of $2,720 on January 12. The downward trend lasted for 11 days.
ETH has been trading within a horizontal range for the past 61 days. Will it explode or collapse?
Ethereum fails to clear resistance
Technical analysis on weekly time frames shows that ETH has increased since June 2022. During this period, three higher lows (green icons) were created, with each subsequent acceleration of the increase.
Ethereum price growth peaked in January 2024 at a high of $2,720. The high exceeded the 0.382 Fib retracement resistance level and horizontal resistance area.
However, ETH subsequently fell below that area, creating a deviation from its previous move. ETH is still trading below this resistance area.
The weekly relative strength index (RSI) is trending downward. Market traders use RSI as a momentum indicator to identify overbought or oversold conditions and decide whether to accumulate or sell assets.
Readings above 50 and an upward trend indicate that bulls still have the advantage, while readings below 50 indicate the opposite. Even though it is above 50, RSI is falling. It also created a bearish divergence (red) before the decline, which often precedes a downward move.
Read more: What is Wrapped Ethereum (WETH)?
What are analysts saying?
Cryptocurrency analysts and traders at X are uncertain about the future trend of ETH.
CryptoMichNL suggests that ETH will rise to $3,000 as long as the price stays above $2,150.
That person believes it too. ETH Will Surpass Bitcoin (BTC) Due to the Dencun upgrade:
The Dencun upgrade will be live on the final testnet in the coming days. It is most likely to have a positive impact on the Ethereum price, but we would like to see a reversal of 0.06 or a clearing of the low for confirmation.
XForceGlobal uses Elliott Wave Theory for analysis. But he Future trends suggest there are still two possible counts.One is bullish and the other is bearish.
Crypto God Zone It suggests that the price will initially fall but then bounce back..
Read more: How to Buy Ethereum (ETH)
ETH Price Prediction: What is the Range?
The daily time frame outlook provides similarly indeterminate trends due to price movements and RSI readings.
Price action shows that ETH has been trading between $2,200 and $2,370 over the past 61 days. It is currently nearing the top of the range, which coincides with the 0.382 Fib retracement resistance level.
However, although RSI is increasing, it is still below 50 (red circle), which is likely a resistance level.
Therefore, whether ETH breaks out of a range or collapses will determine the future ETH price prediction.
A successful ETH breakout could trigger a 16% increase to the next resistance at $2,700, while a breakout of the $2,200 support area could trigger a 17% decline to the next support at $1,950.
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