- ETH peaked at $1,700 earlier today.
- Previous resistance around $1,450 has turned into support.
- A bearish 4-hour pin-bar indicates a potential reversal.
The overall crypto market is bullish today. The rapid move to the upside seen yesterday has continued overnight. Among the major altcoins, DOT has performed the best with a gain of around 20 percent. The market leader, Bitcoin, is up by 7 percent. However, some signs of reversal are starting to show as the market has extended significantly.
Ethereum price prediction: Ethereum set to reverse after rapidly gaining 34 percent?
As mentioned in yesterday`s Ethereum price prediction, ETH/USD has continued to move higher above the previous all-time high. After a strong breakout from the $1,450 resistance area, Ethereum quickly moved to $1,700. Overnight, a bearish 4-hour pin-bar was formed, potentially signaling that the market looks to reverse.
Therefore, Ethereum could see a reversal later on. A retest of previous resistance around $1,450 as support could provide a good base to enter a long position. For now, ETH/USD has moved too high to consider a long position, and the best option would be to wait for further price action development.
ETH/USD 4-hour chart – Ethereum rejecting further upside?
Looking at the 4-hour chart for ETH/USD, some signs of rejection for further upside are currently seen in the form of a 4-hour bearish pin-bar. However, Ethereum has continued to move with a strong momentum overnight. Therefore, we might see further highs today. It is, however, too early to predict a medium-term reversal.
Overall, Ethereum has experienced several days of strong bullish momentum. After a breakout from the several week ascending triangle consolidation pattern, ETH/USD has gained around 16 percent. The breakout resulted in very bullish price action, which has led to the current new all-time high of $1,700.
Currently, Ethereum starts to show the first signs of reversal. A 4-hour bearish pin-bar indicates some rejection for further upside. Additionally, Ethereum has pushed below the $1,650 price mark twice, further confirming bearish pressure building up.
If Ethereum does reverse, the downside’s clearest target would be the previous $1,450 resistance, which should now act as a support. This would mean a retracement of around 15 percent from the all-time high. Support could also be provided by the area of 50 to 61.8 percent Fibonacci retracement around $1,433 – $1,484. Therefore, this is the key area to watch for on Ethereum`s way down.
The ascending trendline that formed the several-week ascending triangle pattern could also play some role in reversing the market to the upside. ETH/USD tested the trendline during the end of January/ beginning of February. The test resulted in the current upswing.
Looking at the moving averages of ETH/USD, similar support has been provided several times. The area between 50 and 100 period moving averages could offer an additional confluence of support, since MA`s should move towards the $1,450 support level soon.
Therefore, there are several key technical levels around the $1,450 mark. If ETH/USD can reach this area and show signs of reversal, we should see a reversal back to the upside.
Ethereum Price Prediction: Conclusion
Overall, Ethereum price prediction is bearish as the market has extended too far from the previous swing low. A key price area to look out for is located around the $1,450 mark. If Ethreum can reach it, the risk/reward ratio for a long position would be great.
However, the analyst warns that Ethereum could still move higher today without a healthy retracement. For now, the best option would be to wait for further price action development.
For further reading, see our long-term Bitcoin price forecast or read the latest news on how Visa is developing blockchain solutions for U.S. Banks.
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.