Ethereum (ETH), the largest altcoin by market value, has once again surpassed the $1,900 mark. So, what happens next? Unfortunately, the anticipated surge triggered by Merge and Shapella, popular altcoins, did not occur. Due to the prevailing negative sentiment in the general market, the price continues to struggle, remaining below $2,000.
Ethereum (ETH)
Ethereum (ETH) has been trending negatively since the beginning of April, wrestling with a long-term resistance line. The overall outlook for the weekly timeframe indicates a downward trend, even though it’s somewhat muddled with mixed signals. In early April, Ethereum’s price peaked for the year at $2,151 and passed the approximately $1,950 resistance area. However, a significant decline occurred the following week, and the price fell below this level, confirming the critical level as resistance.
Thus, the previous breakout was invalidated, and if the negativity in the price continues, the $1,600 level may be targeted in the medium term.
Ethereum Price Prediction Comment
Weekly RSI points to a recovery in investor demand. The six-hour chart, on the other hand, supports hopes for a short-term recovery. The foundation of the short-term bullish expectation is formed by Elliot wave counting. The short-term count indicates that the price is in a complex W-X-Y correctional structure, thus revealing the shape of the channel.
If the count is accurate, the price could hit a new peak towards $2,500 after retracing to the support level of $1,600 to $1,725. The short-term positive sentiment suggests that the move towards $2,500 could start before the expected bottom if a breakout from the channel occurs.
On the other hand, Bitcoin’s price hovering around $28,000 during this period is supportive for ETH. If the development in Hong Kong on Thursday also triggers the anticipated excitement in the market, the chance of a breakout from the channel could increase. The size of individual investor demand based in Asia after Hong Kong’s step will determine the medium-term trend in the market as a whole.
Lastly, the formal enactment of the US debt ceiling agreement is expected in a few days. The Bitcoin price, which has been trapped below $29,000 due to the default risk, could break its narrow volatility with this development. Investors have seen the lowest volatility in three years, and such sideways movements are generally promising as they often lead to upward breakouts.
