Ethereum dubbed popularly as the “digital gold” has been showing some strength after a volatile start in January. The price chart shows that it has made a small double top pattern which can stop the bullish run.
In this article, we will look at the current price action of ethereum along with the weekly analysis and future outlook.
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Ethereum Price Prediction
ETH is currently trading at $2,316.04. The market cap of ethereum stands at $278.35 billion, making it the dominant platform for decentralized applications.
The current price of ethereum is still below its all-time high of $4,362.35. However, it has bounced back from its recent low of $1,728.03.
Let’s have a look at the chart below for trend analysis:
Ethereum is currently forming a double top pattern, which suggests it could be in a temporary bear mode before breaking out and going bullish.
Weekly Price Analysis
The weekly chart of ethereum shows that the cryptocurrency has been trading in an ascending channel since the beginning of the year, forming higher highs and higher lows. This pattern indicates a bullish trend, as the price is making consistent upward movements within a defined range.
The support level is around $2,000.
The resistance level is around $2,500.
The relative strength index (RSI) is above the 50 level, indicating a positive market condition.
If the price of ethereum breaks above the resistance level with a strong volume and a high RSI, it could signal the continuation of the bullish trend, with the next target at $3,000. Conversely, if the price of ethereum breaks below the support level with a strong volume and a low RSI, it could signal the reversal of the bullish trend, with the next target at $1,500.
Future Outlook
One of the key events that will affect the price of ethereum is the launch of Ethereum 2.0, which is a long-term project that aims to transform the platform from a proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) consensus mechanism, as well as to implement sharding and other scalability and usability improvements.
There are also some positive signs that indicate a growing recognition and acceptance of ethereum by some regulators, such as the approval of ethereum ETFs in Canada and the potential approval of ethereum ETFs in the U.S.
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