- Ethereum price prediction faces headwinds from $1,800 resistance
- Trouble awaits ahead for ETH/USD due to options expiry and profit-booking
- A 20 percent correction is enough to spark buying interest from the bulls
The cryptocurrency sell-off has not affected Ethereum price as the ETH/USD pair has got enough support from $1,650. The accelerating bullish trend will reflect in the long positions that may arise as the new week dawns. However, the dropping market cap can sound a warning call for extreme long positions.
The Ethereum price prediction also borrows cues from Bitcoin price movement. Some minor resistances in a slow uptrend bog down the BTC/USD. However, the other altcoins are undergoing muted price action. The plunge in Ethereum price has been temporary since the swift recovery meant that the price quickly charted its course back from $1,650 to touch $1,740 highs.
The bullish investors are awaiting a clear signal from the long-term daily charts, where the prices close above $1,800, to initiate significant long positions. Another challenge to the bullish Ethereum price prediction is the dwindling DeFi realm that is experiencing project defaults. With close to $41 billion locked in DeFi, the future of Ethereum depends on a lot of variables.
Ethereum price movement in the last 24 hours: Resistances at $1,710 is a threat
In the past two days, the price of Ethereum is falling due to rising bond yields as well. The treasury yields are affecting the traditional markets also that are facing growing challenges due to overvaluation. The 10-year and 30-year yields give severe concerns to the conventional stock and share markets across the globe.
The correction was overdue ever since ETH/USD touched highs above $2,000 and Ethereum price prediction turned overly bullish. However, the inevitable correction did not last long, and the bulls came to the rescue near the $1,645 level. The bearish triangle pattern has not yet fully materialized to affect the price movement. The daily charts also haven’t touched any bearish support levels. The ascending price channel is displaying a head-and-shoulders pattern that signals a bullish outlook soon.
The Ethereum price prediction reflects a bearish outlook due to the ascending wedge pattern in the immediate timeframe. However, this won’t go beyond the hourly timeframe, and the damage may be limited to a $1,650 support level. The ‘head-and-shoulder’ pattern has a neck at the $1,700 area, which means it is an essential level for the ETH/USD pair.
ETH/USD 4-hour chart: Immediate support at $1,650 for bounce
The hourly charts paint a starkly bullish picture. Even though the prices have not gone beyond the Bollinger Bands, the bias is upside as the pair challenges the upper limit at $1,760 time and again. Even though the uptrend has not materialized fully, the bulls still target the upper limit at $2,000. The 38.2 percent Fibonacci retracement at $1,600 gives ample support to the bulls for undertaking long positions.
Another vital Fibonacci level is the $1,500 support that is also the 50 percent Fibonacci retracement of the current bull cycle. Even if the bears intensify selling pressure, the buying bulk will take place at $1,500. It will help strengthen the tailwinds in the present meek bull trend. The accumulation will also gain momentum as the weekend ends, and the thin liquidity wanes give way to high volumes.
The increase in Ethereum transactions on the exchanges in the past week show that traders are not sitting on the sidelines. The effect will be reflected in the coming week. Another trend that ETH/USD will have to endure will be the rising US Dollar which can negatively impact the whole crypto realm.
Ethereum price prediction conclusion: Bulls have the upper hand
Ethereum price prediction has been fairly within the expected lines. The BTC/USD is also performing in line with analysis and charting course towards new highs. The resistance at $1,840 will only give more impetus to the bulls once the price pair closes above $1,710 daily.
As a new week dawns, the ETH bulls will focus on taking the price above successive resistances at $1,725 and then $1,840. More news about ETH 2.0 will further give a boost to the bullish Ethereum price prediction.
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.