Ethereum (ETH) price hit a new yearly high on April 5. Both the weekly and daily time frames are bullish.
ETH price has been rising rapidly since March 10. On March 17, the price broke through the $1,700 area and confirmed support ten days later.
In the process, the daily RSI has broken a bearish divergence above the 50 level, and both indicators point to an uptrend, supporting continuation.
Furthermore, ETH price has been trading within an ascending parallel channel since June 2022. While the support and resistance lines of the channel have not been fully validated, the midline of the channel comes into play. The role is multiple resistance levels (green circles), giving pattern validity.
ETH price broke above the channel’s midline on April 4 and rallied sharply over the next 24 hours. If the upward momentum continues, the price could hit the resistance near $2,400.
ETH/USDT daily chart | Source: TradingView
Ethereum’s Shapella upgrade is expected to launch next week. This upgrade will allow validators to withdraw their staked tokens from the beacon chain to the execution layer. This is the second major Ethereum network upgrade since the release of Ethereum 2.0.
Technical analysis on the weekly time frame points to an upward trend. In March 2023, the price of ETH broke through the downward resistance line formed since the all-time high. A breakout of this long-term structure usually precedes a significant price increase.
Also, the weekly RSI just rose above 50, supporting the continuation of the uptrend. Excluding the small deviation in March 2022 (red circle), when the RSI moved above 50 in April 2020 (green circle), a 2,800% rally followed.
However, ETH price is yet to break the $1,940 horizontal resistance area. If it does, it could proceed to the next resistance at $2,440 and $3,400, created by the 0.382 and 0.5 Fib Retracement resistance levels, respectively. Since the first layer coincides with the resistance line of the parallel channel, it is more likely to act as a local top.
Weekly ETH/USDT Chart | Source: TradingView
In summary, the most likely ETH price prediction is a break above the long-term resistance at $1,940 followed by a rally to $2,440. This bullish forecast will be invalidated when the price closes below the midline of the current channel. In this case, ETH could drop to $1,700.
You can see the token price here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should do their research carefully before making a decision. We are not responsible for your investment decisions.
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