Bitcoin remains above the $70,000 mark, and the bears’ dream of a dip below $60,000 is fading into despair. For altcoin investors, things are generally going well as BTC’s strong performance boosts appetite for other cryptocurrencies despite the negativity. However, Ethereum continues to linger around $3,500 after a regulatory blow from the US.
Ethereum (ETH)
According to the Pi Cycle Top indicator, a consolidation signal is emerging for the price. At the time of writing, the indicator’s upper limit is at $4,231 with a base at $2,750. This suggests a consolidation area for the bulls to catch their breath, rather than a peak, and could also be a precursor to the next rise.
When the price surpasses the long-term average (350 days times 2), we might think a market peak is near and a downturn is approaching. If it’s below the short-term average, the price is considered cheap. Currently, the ETH price may continue its sideways movement for a while as it’s nearly in the middle of both.
ETH Price Prediction
ETH’s Net Unrealized Profit/Loss (NUPL) continues to balance steadily between “Optimism – Anxiety” and “Belief – Denial.” Optimism was expected to increase exponentially towards May, with investors moving with a greater appetite for risk. However, the SEC‘s move against Ethereum significantly weakened the possibility of ETF approval this year.
As investors become more certain of ETF rejections, which they believe to be a good price catalyst, the price has anchored below $4,000. This supports the consolidation signal mentioned in the first section.
On the four-hour chart, the EMA lines are close to each other, confirming the continuation of the consolidation process. In other words, ETH may continue to see uneventful days for a while. If volatility increases, there’s a resistance at $4,100 above. Daily closes above this level could lead to a move towards the all-time high.
On the other hand, if the $3,200 level is lost, a downward breakout could occur. In this case, the likelihood of the price forming a new bottom between $2,900 and $2,750 would increase.
