Ethereum Price Analysis: ETH Hit $2,000 Mark; What’s Next?

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The Ethereum price analysis indicates a consolidation near the critical resistance level with a bullish bias. The price opened higher and tag the psychological $2,000 level for the first time since May 31.

The bullish sentiment is high in the second largest cryptocurrency as the Merge draws closer the additional buying pressure is also increasing. The recent price action reveals the overpowering of multiple resistance levels to break above $2,000 by ETH bulls.

Will the next upside be $25,000? Let’s study what technical indicators tells.

As of press time, ETH/USD is exchanging hands at $1,983, up 1.21% for the day. The 24-hour trading volume gains marginally to $ 18 billion according to CoinMarketCap data.

ETH price looks for the fresh upside

On the daily chart frame, the Ethereum price analysis implies the presence of buyers at every dip point. ETH gave a breakout of a Cup & Handle Pattern, a bullish continuation formation. The price picked the momentum over the past three days.

The trading volume is below the average line and declining, with the price moving upwards. This might be a concern for the bulls. When the market is rising while volume is declining, it indicates the big money is not the one buying, more likely slowly exiting positions.

The RSI (14)  is trading above 50. When the relative strength index is above 70, indicates that a security is becoming overbought or overvalued. It may be primed for a trend reversal or corrective price pullback.

Whereas, the MACD line crosses above the signal line above zero, indicating a bullish outlook. 

On the hourly chart, the price is trading in a rising channel, making higher highs and higher lows.

The hourly RSI is sloping downwards, while the price is rising, indicating a bearish Divergence. A bearish divergence happens when the price forms higher highs, but the indicator creates lower highs. Usually, the price goes down after bearish divergence forms. The downward movement occurs because the indicator is more important in defining the coming price direction. 

Also read:  Cross $160 Million As Ethereum Breaches $2,000

The price is currently trading near the lower trendline of this rising channel along with the support of a 20-day period moving average which is $1,980.

If the price breaks below this channel and slips the moving average, then we can expect a good fall of up to $1,937. 

On the other hand, closing above the $2,000  level could invalidate the bearish outlook. And the price can turn higher toward $2,100 followed by the high of May at $2,529.47.

ETH is coming in a corrective or retracement phase on all time frames. However, any retracement could be a dip buying opportunity for sidelined investors. 

The post Ethereum Price Analysis: ETH Hit $2,000 Mark; What’s Next? appeared first on CoinGape.

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