The Ethereum (ETH) price increased by more than 40% over the past few weeks and is approaching its all-time high levels.
While the long-term trend is likely still bullish, a short-term decrease is expected before Ethereum resumes its upward movement.
Long-Term Ethereum Levels
The ETH price increased considerably during the week of Dec. 27 – Jan. 4, doing so by nearly 43%. ETH continued its increase earlier today to reach a high of $1,162.97. However, the higher prices could not be sustained, and ETH created a long upper wick and fell back below $1,000.
The $1,162 high also coincides with the 0.786 Fib retracement level at $1,150. If ETH continues increasing, the next resistance would be found at $1,250, before the all-time high price of $1,440.
Despite showing overbought levels, technical indicators are still bullish, indicating that ETH is likely to continue increasing and eventually reach a new all-time high in the process.
Future Movement
Similar to the weekly chart, indicators in the daily time-frame are still bullish. However, the current daily candlestick is shaping up to be a shooting star, which is normally considered a bearish reversal candlestick.
The daily Ethereum close will be extremely important in helping to determine if ETH has reached its top.
The two-hour chart shows the first signs of weakness in the form of a lower momentum bar in the MACD and an RSI decrease from overbought territory. In addition, ETH is following an ascending support line, which is currently near $800.
Therefore, if ETH were to continue its descent, it would be likely to find support near $800.
ETH Wave Count
Cryptocurrency trader @TheEWguy outlined an ETH chart stating that the price is in an extended third wave and is likely to continue increasing above $1,000.
The wave count suggests that ETH is in the fifth sub-wave (shown in black below) of its third wave (white), from a bullish impulse that began back in March.
ETH has already moved above the $1,026 target for the top of wave 3 and is currently decreasing rapidly.
Therefore, ETH is expected to decrease in the short-term to complete wave 4 before resuming its upward movement towards a new all-time high.
ETH/BTC
The ETH/BTC chart is bullish since it shows a retake of the ₿0.027 area and a breakout from a descending resistance line afterward.
The next resistance levels are found at ₿0.0335 (which has already rejected ETH) and ₿0.04.
Technical indicators are bullish, indicating that ETH is likely to break out above the ₿0.0335 area and move higher. However, a decrease to validate the breakout level could occur prior to the breakout.
Conclusion
Both the ETH/USD and ETH/BTC charts look bullish, despite the possibility of short-term corrective movements.
ETH/USD is expected to eventually reach a new all-time high price.
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Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
