Saturday, July 13, 2024

Ethereum Price Prediction: ETH top-down analysis hints its upward potential is limited to around $2,500.

The ETH price remains in a tight range, lacking a clear direction. However, a closer inspection of the daily chart suggests a potential price decline, particularly if ETH mirrors Bitcoin’s movements.

Ethereum price prediction thesis and short-term bias
Exchange-Traded Fund (ETF) specialists predict that the January 2024 approval of a Bitcoin spot ETF is likely. Due to the FOMO that this revelation has produced among market participants, the forecast for the market as a whole is overwhelmingly optimistic. It’s interesting to note that this will be a major factor in the bull surge of 2023.

But market liquidity will decline when the holiday season gets underway. Therefore, it’s conceivable that cryptocurrency values will be manipulated. In addition, the price of Bitcoin has flashed many sell signs and has already begun to tone down its ascent.

Because of their close relationship, altcoins will lose double digits in value if the price of Bitcoin experiences a slight decline. Similarly, there will be a correction to important support levels in the price of Ethereum.

This top-down study of Ethereum price forecasts buy-the-dip levels by examining ETH over weekly and daily time frames.

Ethereum price at critical levels
The price of ethereum has been consolidating for several months, resulting in an ascending triangle configuration. Although the technical formation is bullish by nature, this is only true following a profitable breakout. ETH has only resulted in fruitless attempts thus far; no clear breakthroughs have occurred.

Trend lines connect the equal highs and higher lows of the ascending triangle configuration. This arrangement indicates that investors are growing more confident and purchasing is declining at a faster pace.

The first indication of a bullish move was a breakout over the psychological $2,000 barrier, although there has been a lot of back and forth around this level. More specifically, ETH is trading between the weekly support level of $1,933 and the high for the second quarter at $2,141. This is the fourth week in a row that this has been happening.

Ethereum’s price may also trigger a decline to cover early long positions, as Bitcoin’s momentum is waning and suggesting a possible double-digit correction. In that scenario, ETH may target a sweep of the monthly low at $1,782 and a retest of the monthly open at $1,814. This motion would be a 9% to 12% move.

ETH bulls are probably going to fade away shortly.

More complex and important levels are visible on the Ethereum price daily chart, some of which align with the weekly data.

To begin with, the range for Mondays this week is $2,071 to $1,985. Investors should anticipate a sweep of the Monday low in the upcoming days, despite the Monday high being swept on November 28.

If bears in the price of bitcoin support a quick decline that aims to sweep Monday’s range, a sharp correction might follow. If so, investors could examine the 40% increase in Ethereum’s price that occurred between October 12 and November 10. The midpoint of this rise is at $1,829, which is in tight alignment with the monthly open at $1,814 and the monthly close at $1,782, and this upswing produced a local top at $2,138.

Overall, if it ever comes down to it, the $1,750–1,850 level appears to be a decent location to buy the dip.

Although it makes sense, the short-term correction or negative outlook is entirely dependent on Bitcoin’s sell signals. Should Bitcoin tempt short sellers with a small fall and then soar beyond $40,000, it would destroy short sellers and trigger a large liquidation event that might support a climb above $40,000.

In that scenario, the price of Ethereum can cross the $2,232 barrier and target a retest of the weekly resistance level, which is located at $2,521.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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