- Ethereum price predictions expect a fall soon.
- Strong resistance is found at $750.
- Strong support is found at $725.
The queen of cryptocurrencies had started the new year with a continued upward trajectory from last year. The queen had topped at $755 and had some major fluctuations throughout the day. The daily low was $725. Currently, the queen of cryptocurrencies is priced at $737.
The formation of an inverse head and shoulder was started to have been seen, but the queen invalidated the structure by not going up as high as was required for the right shoulder for the figure to be completed.
Although they are pretty normal in cryptocurrencies’ price action patterns, the violent fluctuations could indicate the beginning of market sentiment shift. The queen has been facing strong resistance from the $770 and then the $800 level. Time will tell whether or not the upward trajectory will truly be continued in the new year.
The technical indicators are currently at buy but moving near the neutral level. Eighteen of the technical indicators indicate buy as of yet. Out of these eighteen, the oscillators are mainly neutral and the moving averages are giving out a buy signal. Although the market sentiment is bullish, analysts are predicting that the queen is on the verge of bearish outlooks.
Ethereum price prediction: What to expect?
Analyst Price Action Tradevsa has been noticing bat patterns in their Ethereum price prediction. Currently, the analyst identified a newer bat pattern that can be an indicator of future prices. The bat pattern is bullish, indicating that the bullish market outlook can be continued. In accordance with the bullish bat pattern, the price action needs to follow the green trend line. So far, Ethereum has been observed to be following the trend line closely.
Traders can hope for bullish pressure to continue on the coin. However, if Ethereum falls below the green trend line, the coin must sustain the nearly horizontal red trend line at around $728. The hope of a positive outlook can remain if the coin finds support on the red trend line. Otherwise, the initiation of strong bearish pressure on the coin can result in Ethereum falling to staggeringly low levels.
In their Ethereum price predictions, A few analysts suggest a short position on Ethereum with the belief that the good days of the coin are soon going to be over. One such analyst, A Kan, has suggested the formation of a partial downward parabola. Per the analyst, there is a high risk/reward ratio of 5.57. the coin is expected to drop to around $692. Another analyst, Payam_Azizi, explains in his Ethereum price prediction that a drop to a staggeringly low $600 can be expcted. The growth seen by the coin in the previous year has the potential of being reversed in 2021.
Analyst Bumencetin has identified a head and shoulder formation. The formation, if held, stipulates a drop in prices. The analyst is expecting the price of Ethereum to drop to at least $710. However, the analyst is still optimistic about the Ethereum and is expecting the coin to break the resistance of $800 in the first month of the new year.