Ethereum’s (ETH) rally has stalled since hitting yearly highs on April 14. Despite the decline, there are no clear signs of abating yet.
The news behind ETH price action remains positive. The Shapella upgrade has raised some concerns as it allows users to withdraw previously staked ETH. However, Amount of ether Deposits are still faster than withdrawals.
Will this help ETH rise?
ETH price approaches long-term resistance
ETH is the native token of the Ethereum blockchain, developed by Vitalik Buterin. ETH price has been rising rapidly since March 10.
The daily relative strength index (RSI) showed positive signs, supporting the upside. The indicator broke a bearish divergence (green line) before rising and is now above 70, indicating a bullish trend.
On April 2, the price moved above the middle line (green symbols) of the ascending parallel channel formed in June 2022. Therefore, the price may continue rising towards the resistance line. The channel resistance is at $2,350.
This scenario will remain in effect until ETH remains above the channel’s midline at $1,900.
ETH/USDT daily chart | Source: TradingView
Ethereum Price Prediction: When Will The Price Top?
Technical analysis on the short-term six-hour time frame supports a bullish continuation. This is especially evident when looking at wavenumbers.
The wave numbers show that ETH is in the third wave (black) of a 5-wave up move. This is usually the strongest bullish wave. The number of subwaves is white, indicating that ETH is in subwave three.
The wave count shows that ETH price will bounce towards the resistance line of the channel, which is in line with the signal from the RSI.
ETH/USDT 6-hour chart | Source: TradingView
In conclusion, the most likely ETH price prediction is a rally towards the $2,400 resistance area. However, this bullish outlook will be invalidated when prices break below the subwave 1 high of $1,950 (red line). This is because the fourth wave cannot fall within the range of the first wave. If this happens, the volume of the bullish wave will be invalidated and ETH price could drop to the long-term support line at $1,400.
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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