Will Ethereum (ETH) be able to recover above the $2000 mark?
Date: 2023-06-27 Author: Karina Ziganova Categories: IN WORLD
Currently, ETH is consolidating in a horizontal range between $1650 and $1950. Given the current short-term picture and price dynamics, it is more likely that Ethereum will continue to move towards the upper end of this range and eventually have a breakout.
The growth of the Ethereum rate approached the annual maximum
As the results of technical analysis of the weekly chart show, technical indicators and price dynamics give contradictory signals with a slight bias in favor of a bullish mood.
At the beginning of April, it might seem that the price had broken through the resistance level of $1950. However, this bullish breakout turned out to be untenable. The price fell the very next week and has been declining ever since (red circle).
Two weeks ago, ETH hit a low of $1622 but then rebounded (green icon), confirming the $1650 horizontal area as a support level. Currently, the price is trading in the range of $1650 – $1950.
The Weekly Relative Strength Index (RSI) is used by traders to assess market conditions. An RSI value above 50 and an uptrend indicate a favorable situation for the bulls, while a reading below 50 suggests the opposite. Right now, this metric supports a rebound, although it is currently at a critical level.
When the price of ETH bounced, the RSI also bounced towards the 50 line (highlighted in green circle). This signals a bullish trend. However, it is important to note that the RSI is still very close to the 50 mark. Therefore, there is still a possibility that it could fall below it, indicating the potential for the market to fall.
ETH forecast: wave analysis promises a new annual high
Wave analysis of the shorter daily timeframe gives an optimistic outlook for the price of Ethereum.
According to the most likely scenario, the price completed the first wave of the five-wave bullish structure (white), culminating in the annual high set on April 17. After that, the price entered a downward parallel channel.
As a rule, such channels contain corrective models. The W-X-Y pattern (black) testifies in favor of the correction.
This forecast is also supported by the price rebound to the Fibonacci retracement level of 0.5, which serves as support for the market.
A bullish breakout from the channel on June 21 confirmed the completion of the correction. Hence, ETH price is now expected to rise further to the next long-term resistance level around $2500. This is probably part of a long-term third wave.
Despite this optimistic forecast, if the price falls inside the channel again, it will cancel out the bullish wave scenario and cause a bearish trend for ETH.
In this scenario, the most likely outcome will be a price decline to $1200.
