TL;DR Breakdown
- ETH price prediction past the $1,700 mark hits the barrier, cutting short its price upsurge trend.
- A sell-off signal is in the offing painting a bearish picture.
- The current hike in network gas tariffs might limit ETH’s bouncing back to its previous upswing trend.
- ETH could jumpstart a new price upsurge movement that might breakout past the $2,000 mark.
Monday appears to have been a good day for Ethereum as its technical breakout saw it rising close to the impressive $1,700 mark. However, due to price recovery and correction, the crypto coin could not move past the current price barrier, which stands at $1,600.
At present, a price correction is ongoing, whereby ETH is struggling to stay the $1,500 mark afloat.
ETH Price Prediction: Will Ethereum pullback past the $1,500 sphere?
At the time of writing, there is an ongoing hike in ETH gas fees which seems to put the crypto coin at a disadvantage. Although Ethereum gas fees have always been exorbitantly high, previous tariffs supported the network’s increment of transactions.
This is nothing to worry about, as previous trends have seen Ethereum’s gas hike 3 to 4 times past its current average gas price of $12. According to technical indicators, a spike in Ethereum gas tariffs typically lasts an average of 25 to 60 minutes.
The surprising bit is that price upsurge in the gas tariff tends to clash with Ethereum’s local price declines and short-term price recoveries.
This discovery is not indisputable but gives an understanding of the sudden hike in Ethereum gas tariffs. The gas hikes could have been triggered by paper hand capitulation and panic sell-offs.
Like the norm in the cryptocurrency sphere, such price dips usually attract a buying frenzy, resulting in a price pullback. It is expected that this will happen with the number two cryptocurrency, Ethereum.
ETH struggling to maintain its uptrend movement
At the time of writing, Ethereum is exchanging at about $1,562 and courting with the 50-SMA. Despite starting the day at $1,575, Ethereum has managed to have an impressive run, hitting the day’s high price of $1,603 while also experiencing the day’s low of $1,533.
An escape from the current falling wedge pattern will see Ethereum gain a bullish momentum that might push it close to the $1,700 mark. Additionally, a step above the 100-SMA could initiate a buying frenzy as traders would anticipate a return to record-breaking highs above the $1,900 and $2,000 mark.
On the other hand, failing to settle above the 50 Simple Moving Average (SMA) on the 4-hour chart might signal a bearish trend. This will lead to panic sell-offs that will result in increased overhead pressure, which could lead to ETH exploring lower lows towards the $1,200 mark.
Conspicuously, the TD Sequential technical indicator shows a sell-off signal in the form of a red-15 candlestick. The sell-off signal comes at a time when Ethereum’s price upsurge is in danger.
If the bearish signal is confirmed, the number 2 crypto asset will depreciate in a few 4-hour candlesticks, paving the way for the bearish narrative.
What to expect from Ethereum price?
If ETH manages to hold onto its current 50 Simple Moving Average, it might be able to trigger a new price upsurge on the 4-hour chart. Despite creating a falling wedge pattern in the charts, Ethereum could be on its way to new highs above the $1,700 mark with a small boost.
Similarly, Ethereum’s Moving Average Convergence Divergence or MACD shows a bullish signal, which could attract buyers to the crypto coin.
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.
