Ethereum Price Prediction: TA Contradicts Bullish Fundamentals

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Our last Ethereum price pre­dic­tion is hang­ing by a thread due to the for­ma­tion of a bear­ish pat­tern. How­ev­er, ETH price appears to be revers­ing after get­ting reject­ed from the key psy­cho­log­i­cal lev­el of $2000. Nev­er­the­less, with the Merge upgrade on the hori­zon, the fun­da­men­tals appear to be stronger than ever.

Cryp­tocur­ren­cy prices plum­met­ed at the end of last week as BTC and ETH failed to reclaim key lev­els of $25,000 and $2,000, respec­tive­ly. After mul­ti­ple attempts, the two biggest dig­i­tal assets retract­ed back to their respec­tive sup­ports. How­ev­er, the bulls were not ready to absorb the sell pres­sure, and the prices marked new month­ly lows.

At the time of writ­ing, Ethereum price is trad­ing at $1612. How­ev­er, the native asset of the smart con­tract plat­form has lost 0.82% dur­ing Tuesday’s trad­ing ses­sion so far. This sud­den price rever­sal has sur­prised many swing traders as the mar­kets were antic­i­pat­ing a much bull­ish price action before the upgrade.

Accord­ing to Ethereum news today, the stak­ing rate has increased by 11% in antic­i­pa­tion of the ETH Merge. As per OKLink, 36,000 ETH have been added to the stak­ing con­tract every week since the start of August.

Ethereum Price Prediction

The ETH USD price chart depicts a ris­ing wedge pat­tern formed by a big break­down. Such break­downs tend to be very bear­ish as the price tar­gets the bot­tom of the wedge most of the time. This gives us a price tar­get of $1356, which per­fect­ly aligns with the 0.618–0.65 Fib gold­en pock­et region.

As long as the price stays below the 200 MA on the 4H chart, the above Ethereum price pre­dic­tion would remain valid. The 4H 200 MA cur­rent­ly lies at $1700. There­fore, any dai­ly clo­sure above this lev­el would act as a sym­bol of strength.

It is also worth men­tion­ing here that a dai­ly clo­sure below Fib gold­en pock­et, i.e., $1364, could take the price to $1,230. How­ev­er, with the Merge approach­ing next month, it is bet­ter not to short Ethereum as it might show abnor­mal price action. If you still want to trade this set­up, then the best place to trade is BYBIT.

Ethereum Daily Chart

Technical analysis of Ethereum price chart (1D).
Ethereum Price Chart (1D)

Ethereum Analysis by S&R Levels

Trad­ing cryp­tocur­ren­cies on your own could be over­whelm­ing for new investors. How­ev­er, sub­scrib­ing to our Invest­ingCube Pre­mi­um S&R Lev­els always gives you an edge by keep­ing you updat­ed on all the lat­est trade setups.

Cur­rent­ly, the indi­ca­tor is sug­gest­ing an ETH short set­up with an entry above $1570. The tar­gets of these trades. i.e., $1450 and $1370 some­how align with our Ethereum price pre­dic­tion described above.

Ethereum price analysis by S&R Levels indicator.
Ethereum Price Analy­sis (S&R Levels)



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