The Ethereum (ETH) price broke out from an important resistance area and validated it as support. It has almost reached a new yearly high.
ETH is the native token of the Ethereum blockchain, created by Vitalik Buterin. While it previously used the proof-of-work mechanism, it switched to proof-of-stake after the release of Ethereum 2.0 in September 2022. On March 17, the Ethereum price broke out from the $1,685 resistance area. It returned to validate it as support 10 days later (green icon).
A similar action transpired in the RSI. The indicator broke out from its bearish divergence trend line (green) and the 50 line. It returned to validate the latter as support ten days later.
If the increase continues, the ETH price could move to at least $2,000. However, if the price closes below $1,685, it could drop to the 0.5 Fib retracement support level at $1,465.
Long-Term Ethereum (ETH) Price Outlook Supports Increase
The technical analysis from the weekly time frame provides a bullish outlook for Ethereum for several reasons.
The ETH price broke out from a long-term descending resistance line during the week of March 13-20 amidst a bullish candlestick. Since the line had previously been in place for 483 days, a breakout from it is expected to initiate a significant rally.
While the closest horizontal resistance area is relatively close at $1,950, the next resistance would be at $2,550.
The weekly RSI supports the continuation of the increase, since it broke out from its own descending resistance line and is above 50.
Therefore, unless the price closes below the previously outlined $1,685 support area, an increase toward $1,950 and eventually $2,550 is expected.
To conclude, the most likely Ethereum price forecast is an increase to $1,950 and then $2,450. A daily close below $1,685 would invalidate this and could cause a drop to $1,455.
Bitrue