Ethereum recorded an increase of more than 11% last week after crossing the threshold of $3,500. Let’s take a look at the future prospects for ETH.
Status of Ethereum (ETH)
After testing the $3,300 zone, Ethereum price continued its rise, reaching new highs. At the time of writing, one Ether is trading at over $4,000. Thus, the Ethereum price crossed the 78.6% Fibonacci retracement threshold, calculated from its all-time high. In other words, Ethereum is now only a few hundred dollars away from its all-time high. The bullish scenario mentioned in our analysis of March 6 has therefore materialized. Namely, reaching this last level took place following a rebound from $3,700.
Naturally, Ethereum continued its uptrend. This idea is confirmed by the maintenance of its price above its 50-day moving average. Likewise, Ethereum’s bullish momentum persists, although we can see from the oscillators that it is running out of steam slightly.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Hypotheses for the price of Ethereum (ETH)
If the price of Ethereum remains above $3,900, we could anticipate a bullish continuation up to the $4,200 level. The next resistance to consider, if the upward movement continues, would be $4,400. At this stage, this would represent an increase of more than +8%.
If the price of Ethereum fails to stay above $3,900, we could envisage a return to $3,700. The next support to take into account, if the bearish movement continues, would be around $3,500. At this point, that would represent a drop close to -13%.
Conclusion
Ethereum confirmed its bullish trend by crossing the 78.6% Fibonacci retracement threshold, moving closer to its all-time high. Could this craze be due to its “Dencun” update? What is certain is that it will be crucial to carefully observe the price reaction at the different key levels to confirm or refute the current hypotheses. It is also important to remain vigilant against potential “fake outs” and “market squeezes” in each scenario. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also evolve quickly depending on other more fundamental factors.
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