Ethereum Price Prediction: Cryptocurrency markets witnessed high volatility this week, as evidenced by the narrow consolidation of major digital assets Bitcoin and Ethereum. Neutral candlestick confirmation formations with long wicks do not reflect buyer or seller dominance in these assets. However, if we look after 4 hours, we can see that the ETH price has shown a short sideways trend developing a bullish reversal pattern called the inverted head-and-shoulders pattern.
Also read: Surge in Ethereum whale trading signals future ETH price rise
Whale activity shows confidence as Ethereum tests $3,700 resistance
Ethereum, the second-largest cryptocurrency by market capitalization, rebounded from its previous correction in the fourth week of March as its price decline stopped at $3,060. This horizontal level coincides with the 38.2% Fibonacci retracement level, indicating a healthy retracement stage for Ether to regain bullish momentum.
Additionally, the turnaround increased the coin’s market value by 20%, challenging the resistance at $3,700. Amid the current market uncertainty, ETH price has fallen below this overhead resistance level and is currently trading at $3,530.
However, this consolidation on the 4-hour chart revealed the formation of a bullish reversal pattern called an inverted head and shoulders. This chart setup, often seen at market bottoms, indicates renewed buying interest among traders.
Additionally, recent observations by crypto trader Arichart have shown a notable increase in Ethereum whale trading, increasing bullish sentiment among major investors despite the cryptocurrency's recent price decline. It is suggested that there are.
This increased activity from large stakeholders typically signals a positive outlook for Ethereum's value and suggests a possible future price recovery.
Ethereum bulls focus on $3,700, signal of extended bull market
of ethereum price For the head and shoulders pattern to take hold, the price needs to break through the $3,700 resistance level at the 4-hour candlestick close. This would provide buyers with adequate support to extend the recovery trend to $4,300.
Conversely, a break below the $3,460 support will invalidate our bullish theory.
technical indicators
- Exponential moving average: ETH price moving above the major EMAs (20, 50, 100, 200) indicates that the short-term trend is bullish.
- Relative strength index: The daily RSI slope fluctuating around 50% indicates uncertainty in market sentiment.
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