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Ethereum Price Prediction: ETH price rally towards $3,000 intensifies

TL;DR Breakdown

  • Ethereum price prediction shows the crypto asset is on course in reaching the $3,000 mark.
  • A decisive close above the $2,700 mark will ensure Ethereum’s bullish narrative remains.
  • Key technical indicators suggest Ethereum is in for a brief selling spree soon.
  • The sustenance of the ongoing buying pressure is going to push Ethereum’s value higher, invalidating the looming bearish narrative.

At present, Ethereum is recording recovery price movements after taking a beating in the recent market crash. While the crypto asset is recording sideways price movements at the moment, it has managed to break its ceiling in setting up a new ATH. Although this comes as good news for Ethereum holders and investors, the sudden price surge could trigger a minor drawback.

Ethereum Price Prediction: General price overview

Among the top 10 cryptocurrencies in the market, Ethereum continues to lead the pack in recording positive price movement this week. The smart contract crypto coin depreciated twice last week to settle slightly above the $2,000 support line last week. Luckily for the coin, the bulls came out this week in a renewed push to see it gain towards the coveted $3,000 mark. The $2,000 support line played a critical role in ensuring the Ethereum surges upwards. The most recent surge has seen the crypto asset appreciate above the $2,700 mark, slightly missing the $2,800 mark.

At the time of writing, Ethereum is exchanging hands at $2,762, putting a relentless fight for the $3,000 mark. Although sideways trading appears to be taking precedence, according to the Relative Strength Index, the bulls appear focused on ensuring Ether closes the day above the $2,800 mark. Currently, the RSI indicator is at 63, after the Ethereum entering into the overbought region. Entering the overbought region is a good thing for Ethereum as it shows it currently enjoys investor confidence.

Ethereum price movement in the past 24 hours

Source: TradingView

On the 24-hour chart, Ether’s price movement shows 2 critical technical formations, that insinuate the crypto asset is in for a bearish leg. The Momentum Reversal Indicator (MRI) and the spinning top candle paint a bearish narrative. Both these technical indicators appear to show Ethereum’s bullish momentum is facing exhaustion, which suggests it is going to face some sought of price correction. With the Momentum Reversal Indicator flashing a red 1-candlestick on the 24-hour chart, it suggests Ethereum might face a 1-to-4 candlestick correction soon. Also, with spinning top candlestick moving below Ethereum’s opening price, it predicts a price reversal is in the offing.

At the time of writing, Ethereum’s value is increasing, however, the number of daily active addresses appears to be shrinking. The number of active addresses has depreciated by around 7 percent from 700,000 to around 660,000 since 21st April. This paints a bearish narrative for Ethereum.

Ethereum 4-hour chart

Source: TradingView

According to the crypto asset’s 4-hour chart, the Moving Average Convergence (MACD) indicator shows Ethereum is gradually having a bearish outlook. This is clear with the MACD blue line moving below the signal line. If the situation remains the same, Ethereum risks experiencing heightened overhead and selling pressure, a move sure to push it back towards the $2,700 line.

Conclusion

While major technical indicators paint a bearish narrative, the bulls should consider the possibility of Ethereum resisting these indicators and focus on the ongoing bullish momentum. If Ethereum manages to rally above the $2,800 mark, it will nullify the projected bearish outlook and proceed with its bull run. Investors should expect the pioneer smart contract token in such an event to surge towards the $2,900 mark.  

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.

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