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Ethereum (ETH) Price Fights to Stay Above $2,000 as Tug of War Continues

3 mins
Updated by Ryan James
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In Brief

  • The Ethereum (ETH) price has increased since the start of October, breaking out from a long-term descending resistance trend line in the process.
  • The daily timeframe Relative Strength Index (RSI) gives a mixed reading, but the wave count is bearish, suggesting a new short-term low is likely.
  • Despite the bearish ETH price prediction, an increase above the wave B high will mean that the local low is in, and the correction is already done.
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The Ethereum (ETH) price has fallen since it failed to reach a new yearly high on November 24.

Despite the drop, ETH remains above the $2,000 level. Will it bounce and attempt to reach a new yearly high, or are more lows in store?

Ethereum Falls Before Yearly High

The technical analysis of the daily time frame shows that Ethereum began an upward movement in October. During the increase, it broke out from a descending resistance trend line that had been in place since the yearly high of $2,140 on April 16.

The ETH price has not returned to validate this trend line as support yet.

While Ethereum approached its yearly high, it failed to reach it. Rather, it created a lower high and a long upper wick (red icon) on November 24. The wick is considered a sign of selling pressure.

Ethereum (ETH) Price Movement
ETH/USDT Daily Chart. Source: TradingView

With the RSI as a momentum indicator, traders can determine whether a market is overbought or oversold and decide whether to accumulate or sell an asset.

Bulls have an advantage if the RSI reading is above 50 and the trend is upward, but if the reading is below 50, the opposite is true.

The RSI gives mixed readings. The indicator is falling and has reached 50. However, it has also generated a hidden bullish divergence (green), a sign of trend continuation.

What Are the Analysts Saying?

Cryptocurrency traders and analysts on X are not in accord with the future ETH price.

ColdBloodShill stated that the price could return to the $1,900-$2,000 region before resuming its previous bullish trend. He tweeted that:

If $ETH grinds/trades higher this is one of the potential attack points if we see the market move back to the downside.

ETH Price Movement
ETH/USDT 15-Minute Chart. Source: X

Satoshi Flipper is bullish for fundamental reasons. He suggested that:

A ton of institutional capital is heading to #Ethererum once the spot ETF’s are launched. It’s time for the $ETH price to reflect that

Finally, CryptoBusy noted the long-term resistance at $2,100, stating that the price will likely explode once it breaks it.

ETH Price Prediction: Will Price Hold Above $2,000?

Technical analysts employ the Elliott Wave theory to identify recurring long-term price patterns and investor psychology, which helps them determine the direction of a trend.

The most likely wave count suggests the ETH price is in the C wave of an A-B-C corrective structure (black). The correction comes after a five-wave upward movement that began in October.

Giving waves A:C a 1:1 ratio leads to a low of $1,900, coinciding with the 0.382 Fib retracement support level (white).

If wave C extends to 1.61 times the length of wave A, ETH can fall to a low of $1,760, a decrease of 13% from the current price. This second target would coincide with the 0.618 Fib retracement support level.

Etherum (ETH) Price Count
ETH/USDT 12-Hour Chart. Source: TradingView

Despite this bearish ETH price prediction, a move above the wave B high of $2,136 will mean the correction is over. In that case, ETH can increase by 25% and reach the next resistance at $2,500.

For BeInCryptos latest crypto market analysis, click here.

Top crypto platforms in the US | March 2024

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Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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