Ethereum Price Consolidates Below 8 Month Trend, Is $4000 Incoming?
Is $4000 ETH Price Incoming?
Ethereum (ETH) price has shown immense strength after it successfully launched its “London” upgrade earlier this month. One of the advancements with this upgrade is that now ETH is burned from each transaction, essentially bringing ETH closer to a deflationary asset. At the time of writing, over 71,000 ETH has been burned since this upgrade. Investors took a bullish stance towards this & since the upgrade took place, ETH has been in a strong uptrend. As long as BTC stays steady, ETH will likely hit mid $3000s soon.
While looking at the last 10 days of trading, we can see how ETH has formed an ascending channel (potential bull flag). Bulls have been consolidating below a near 9 month trend line which was holding the price of ETH until mid June. Ethereum must regain this trend to experience a large rally.
In addition to this trend lies a major resistance zone from $3135-$3323. Bulls must barrel through these two marks for ETH to have a clear sky to its given targets. In the likely case that ETH breaks above this marks, expect price to rise to $3565 & potentially $4092.
Ethereum Price Analysis: ETH/USDT 1 Day Chart
Along with this MA lies a major support zone of $2927 which price has been holding for nearly 2 weeks. In the case bears assert more dominance & ETH price breaks below this support along with the bottom trend of its channel, expect a retracement to $2616 to occur.
While looking at the Stochastic RSI, we can see how strength just reset to the oversold territory. This is a healthy scenario as it means price is regaining strength for a potential run up. As long as the stochastic stays above the 20 value, we should expect a bullish breakout to soon occur. The relative strength index has formed a slight bull flag pattern.
A breakout of the top trend is needed for a large push in price to occur.
ETH Intraday Analysis