Ethereum (ETH) is trading at key horizontal and diagonal resistance levels. A break above it can spark a strong rally.
ETH is the native token of the Ethereum blockchain, created by Vitalik Buterin. Last week, supply deflation hit a new record. Since the merger, Ethereum’s supply has been reduced by $40 million, which is equivalent to removing 32,600 ETH from the circulating supply.
Next, the amount of Ethereum staked via the Liquidity Staking Protocol exceeded 7 million tokens.biggest player is Lidoresponsible for more than 70% of ETH pledged.
the last one Ethereum Conference The three-day event will take place in Zurich from April 14th to 16th.
Bullish weekly candle leads to new yearly highs
The weekly chart for Ethereum is relatively bullish. This was especially evident last week when the price formed a bullish engulfing candle (green symbol). However, ETH price has yet to break above the descending resistance line formed since the all-time high.
However, the weekly RSI has broken above its descending resistance line. This usually precedes a similar breakout in price action. Therefore, ETH price might break out and rally towards $2,000.
However, Ethereum price may drop to $1,200 on rejection.
Weekly ETH/USDT Chart | Source: TradingView
Ethereum (ETH) Transactions Are at Critical Levels
Ethereum is trading within the 0.618 Fib Retracement resistance at $1,660. This key level has acted as major resistance since November 2022. Furthermore, it acts as a horizontal resistance zone in addition to being a Fibonacci resistance. Although ETH price broke this resistance level several times, it failed to close above it.
The reading level in the indicator is interesting. Although the daily RSI produced a bearish divergence (green line), it has now broken the downtrend line. Since it is also above 50, the RSI can be considered bullish. If ETH price continues to rise, the next resistance level will be at $2000. On the downside, a rejection could result in a drop to the nearest support at $1.520.
A move to $2,000 is most likely given bullish indicators on the weekly time frame and a breakout on the RSI.
ETH/USDT daily chart | Source: TradingView
To sum up, the most likely Ethereum price prediction is a rally to $2,000. However, a break below $1.520 would negate this bullish outlook and could lead to a drop to $1,200.
You can see the token price here.
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According to Beincrypto