ETH, created by Vitalik Buterin Ethereum It is the primary token of the blockchain. The outlook for the weekly timeframe points to a bearish trend, albeit with some mixed signals.
At the beginning of April, the price of Ethereum reached the highest point of the year at $2,151. It climbed above the $1,950 resistance level.
However, there was a significant decrease in the following week. The price dropped below this level, confirming it as a resistance area (indicated by the red icon).
As a result, the previous break is now considered invalid. This downward movement is considered as bearish as the buyers cannot sustain the upward momentum. The nearest support area is likely to be found at $1,600.
However, the weekly Relative Strength Index (RSI) remains bullish. The RSI is a tool used by traders to assess whether a market is overbought and helps them decide whether to accumulate or sell an asset.
Readings above 50 and an uptrend indicate that the bulls are still at an advantage, while readings below 50 indicate the opposite. Values reading above 50 at the moment indicate that the upward trend continues.
ETH Price Prediction: Will Price Resist Back Up?
Technical analysis on the short-term six-hour time frame has a more bullish outlook. The main reason for this is wave counting.
The most likely wave count indicates that the price is in a long-term second wave (white). Therefore, a significant uptrend is expected after the current correction is completed.
The short-term count shows that the price is in a complex WXY corrective structure, hence the shape of the channel.
If the count is correct, the price will decline towards the 0.382-0.5 Fib retracement level of $1,600 to $1,725. This will also coincide with the support line of the channel.
After that, a significant upward move is possible that pushes ETH price to at least $2,500.
Despite this bearish short-term ETH price prediction, a breakout from the channel will mean that the trend is up and the correction has already been completed.
In this case, it is possible for the price to rise to $2,500 immediately.