The cryptocurrency market has performed slightly well over the past week, with the majority of cryptocurrencies rebounding from their prior slump. As a result of this month’s bearish trend, numerous cryptocurrencies reached their 12-month lows.
Ethereum (ETH) is one of the coins that experienced a positive rebound this past week and is anticipated to perform well this year. In the coming days, the price of Ethereum might become a highly desirable currency for day cryptocurrency traders. Nevertheless, the definitive confirmation of additional upside potential has still not happened.
Ethereum Runs Into Strong Resistance
Ethereum reached the 20-day Exponential Moving Average (EMA) at $1,300 on June 26, but bulls were unable to push the price over resistance. This indicates that the bears are unwilling to give up their position without a fight. If the price declines from its current position, bears will attempt to drive ETH to $1,050.
This is a crucial level to monitor, as a breach below it could indicate that bears are in authority. If the price comes up from its current level or from $1,050, the bulls will attempt to move Ethereum over the 20-day EMA at $1,300. If they are successful, ETH may rise to the breakdown level of $1,700. A break and subsequent closing above this resistance may signal the beginning of a new upswing.
ETH is currently trading at $1,225.53, which is approximately 0.45% lower than yesterday’s high of $1,273. Bulls appeared intent on recapturing the $1,300 mark over the last weekend, but this objective was thwarted by the Relative Strength Index (RSI) indicator. The RSI barrier of 39.80 was insurmountable during the weekend, prompting bulls to sell off earlier gains. However, it is possible that traders will attempt this level again in the next few days, causing ETH’s price to return to the $1,300 zone.
Ethereum Price Could Look For A Recovery
The Ethereum price exhibits bullish indicators that indicate a comeback rise towards $1,300 and beyond. Since the unexpected sell-off on June 18, the smart contract token has increased by 35%, causing bulls to surge throughout the weekend. The Ethereum price is currently thought to have surpassed 80% of stage 1 of the anticipated summertime bull run.
At the current Ethereum price, the bulls have generated two impulsive waves within a parallel channel. If the bull run is solid, a further surge beyond the upper limits of the trend channel might produce the last wave with goals between $1,400 and $1,750. When the rally loses traction, a three-wave retracement will occur, re-directing the price towards targets between $1,400 and $1,200.
With one exception, the bullish premise is invalidated by a breach below $877.80. Before initiating a position, investors must allow the present rise to conclude and see a three-wave decline. If the technicals continue to develop in this fashion, investors will have several opportunities to join the upswing.
Ethereum Price Prediction
In short, Ether is anticipated to perform strongly in the next few months. There are numerous advancements on the Ethereum chain that will propel the price of Ethereum out of its current slump. However, the performance will also depend on the conduct of Ethereum holders in the coming weeks.
If bears continue to dominate the market, Ethereum may fall to $877.80 in the next bear run. Therefore, if inflation continues to rise, Ethereum may contract further. Alternatively, if bulls gain control, the next Ethereum handle will be $1,300. Moreover, as a result of the advancements that the Ethereum team is implementing, especially Ethereum 2.0, the Ethereum price is anticipated to increase this year.
