TL;DR Breakdown
- ETH price forecast puts ETH in its early phases, in preparation for a massive upturn head-and-shoulders (H&S) technical price upsurge.
- According to the IOMAP model, the lack of a profound resistance level validates Ethereum’s expected price surge.
- If ETH fails to settle above the inverted H&S pattern, the crypto coin might experience price declines that might see it move towards the $1,600 mark.
ETH price forecast insinuates Ethereum is back on the right track after overcoming last week’s stubborn resistance at $1,600. At the time of writing, Ethereum appears to be making positive price movements that have removed it from the woods.
At present, the number 2 cryptocurrency is exchanging above the $1,700 mark following a significant technical price surge. However, Ethereum appears to be facing resistance in bypassing the $1,800 price range.
ETH Price Forecast: Ethereum price upsurge targets the $2,000 mark
On careful review of Ethereum’s 1-day chart, it is evident that ETH has managed to form an upturn H&S pattern on its most recent price recovery. The upturn H&S pattern usually signals a bullish momentum on the offing.
In Ethereum, the upturn H&S pattern means the crypto coin is likely to experience a price surge above the neckline. Ethereum has already begun showing bullish signs, despite facing some resistance in bypassing the $1,800 mark.
Ethereum will have to rely on retesting the neckline support to initiate a new bullish price movement that might pave the way for further gains past the $1,800 mark.
Ethereum’s current bullish outlook is backed by the MACD, also known as Moving Average Convergence Divergence, technical indicators. The crossing of MACD’s line above the signal line validates Ethereum’s current price upsurge.
As long as Ethereum manages to ensure the MACD technical indicator remains steady and moving northwards, the crypto coin is likely to bypass the $1,700 region to move closer to the $2,000 target.
According to IntoTheBlock’s IOMAP technical indicator, ETH appears to be having a relatively smooth ride moving towards the $2,000 mark. The lack of robust resistance seems to hasten Ethereum’s price upswing.
However, according to the same IOMAP technical indicator, subtle seller congestion is experienced at the $1,850 and $1,940 price zones. Here, approximately 314,000 investors previously bought about 969,000 ETH.
On the other hand, Ethereum is resting on a region it enjoys massive support, validating that it is most likely to encounter a price surge. The support running from $1,500 and $1,570 stands out due to the roughly 330 investors currently reaping profits from the 10.8 million ETH coins bought within the price range.
What to expect from ETH’s price
In the virtual currency sphere, scarcity is one of the main components that make a crypto asset a convenient store of value. With Ethereum planning to implement the EIP 1559 proposal, Ethereum is expected to be in short supply in the market. The EIP 1559 proposal suggests the burning of Ether coins every time ETH is used to pay for gas tariffs on a transaction.
The reduction of ETH coins in circulation is likely to lead to higher token prices, making Ethereum’s crypto token more valuable.
At present, ETH’s price upsurge appears to have hit the deadlock before bypassing the $1,800 mark despite the breakout from the H&S technical indicator. Ethereum still needs to secure further higher support, ideally past the H&S neckline.
Failure to do so before the end of business today might see the number 2 crypto coin plummet towards the 100 SMA. This will result in Ethereum exchanging at the $1,600 region.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
