Ethereum (ETH) price broke a key resistance area and confirmed it as support. It almost hit a new yearly high.
ETH is the native token of the Ethereum blockchain, created by Vitalik Buterin. While the network used to be PoW, it switched to PoS after the release of Ethereum 2.0 in September 2022. On March 17, the price of Ethereum broke through the $1,685 resistance area. The price returns after 10 days to validate it as support (green icon).
Similar action is taking place in the RSI as well. The indicator broke a bearish divergence (green) and the 50 level. Return after ten days to confirm the line as support.
If the upward momentum continues, ETH price could rise to at least $2,000. However, if the price closes below $1,685, it could drop to the 0.5 Fib Retracement support at $1,465.
ETH/USDT daily chart | Source: TradingView
long term outlook
Technical analysis on the weekly time frame provides a bullish outlook for Ethereum for a number of reasons.
ETH price broke a long-term descending resistance line for the week of March 13-20 with a bullish candle. Since this line has been in existence for 483 days, a break above this line is expected to trigger a strong rally.
While the nearest horizontal resistance is at $1,950, the next resistance is at $2,550.
The weekly RSI supports a bullish continuation as it has broken the descending resistance line and is above 50.
Therefore, unless the price closes below the aforementioned $1,685 support area, a rally to $1,950 and above $2,550 is expected.
Weekly ETH/USDT Chart | Source: TradingView
In summary, the most likely Ethereum price prediction is a move to $1,950 and then to $2,450. A daily close below $1,685 would invalidate this and could lead to a drop to $1,455.
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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