Ethereum (ETH) price rally has stalled since its yearly high on April 14th. Despite the decline, there are no clear signs of weakness yet.
The news behind the ETH price action remains positive. The Shapella upgrade raised some concerns as it allowed users to mine their ETH tokens. However, deposits still exceed withdrawals.
Will this help the continued bullish movement in ETH?
ETH price is nearing the long-term resistance
ETH is a digital currency that runs on the Ethereum blockchain, developed by Vitalik Buterin. Its main focus is decentralized applications and smart contracts. The value of ETH has been increasing rapidly since March 10th.
The daily Relative Strength Index (RSI) is showing positive signs that support the price rally. The indicator breached a bearish divergence trend line (green line) before rallying and is now above 70, indicating an upward trend.
The RSI is a momentum indicator used to identify overbought or oversold conditions. An upward trend and a reading above 50 indicates that the bulls still have strength on their side. While a reading above 70 is considered overbought, there is no new bearish divergence. Therefore, the price rally is still supported by increasing momentum.
On April 2, the price moved above the middle (green icon) of an ascending parallel channel that has been in place since June 2022. An ascending channel is a pattern that contains price action. It is likely that each of its resistance and support lines will be touched multiple times.
Since the price has moved above the center line, the most likely scenario is an increase to the resistance line. The RSI also supports this.
The channel resistance line is currently near $2,350. This scenario remains valid as long as ETH price does not close below the mid-line of the $1,900 average price channel.
Ethereum Price Prediction: When will the price reach the top?
Technical analysis from the short-term 6-hour time frame supports the continued increase. This is especially evident when looking at the number of waves.
The count indicates that ETH is in the third (black) wave of a five-wave bull move. These are usually the sharpest up waves. The number of subwaves is given in white, indicating that ETH is in the third subwave.
The number of waves indicates that ETH price will increase towards the channel resistance line, in line with the RSI.
Elliott Wave Theory is a tool used by technical analysts. It looks for repeating long-term price patterns and investor psychology in order to determine trend direction.
In conclusion, the most likely ETH price prediction is for a rally towards the $2,400 resistance area. However, these bullish expectations will be invalidated by the decline below the first sub-wave high at $1,950 (red line). This is because the fourth wave cannot fall in the area of the first wave. If that happens, the bullish count will be invalidated and Ethereum price could drop to the long-term support line at $1,400.
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