Since the start of April, the price of Ethereum (ETH) has experienced a downward trend, diverging from a pivotal long-term resistance level. However, projections from the wave count and short-term market activity imply a likely upward swing in the future.
Ethereum’s main token, ETH, was established by Vitalik Buterin on the Ethereum blockchain. Although the long-term weekly outlook is primarily bearish, it is also marked by certain contrasting indicators.
In the first week of April, Ethereum reached its yearly peak at $2,151, seemingly surpassing the resistance barrier around $1,950.
Nonetheless, a dramatic drop in the subsequent week resulted in a price below this resistance level, effectively solidifying it as a robust resistance area (highlighted by the red icon).
As a result, the earlier price surge is now considered void, and the bearish trend is substantiated due to the inability of buyers to maintain the upward momentum. The closest support zone is identified at $1,600.
Yet, the weekly Relative Strength Index (RSI) maintains a bullish outlook. The RSI is a valuable tool for traders, used to determine whether a market is oversaturated or underperforming, thus guiding their buying or selling decisions.
An RSI score over 50, along with a rising trend, points towards a market favoring the bulls, whereas a score under 50 signals the opposite. At present, an RSI reading over 50 is suggestive of a bullish trend in motion.
A Brighter Picture in the Short-Term The technical analysis from a short-term, six-hour timeframe provides a more optimistic perspective, largely owing to the wave count.
The dominant wave count infers that Ethereum is currently in a long-term second wave (white). As such, a noteworthy upward climb is anticipated following the completion of the current market correction.
The short-term wave count suggests that Ethereum is in a complex W-X-Y corrective structure, thereby influencing the shape of the channel.
If this count is accurate, the price will descend towards the 0.382-0.5 Fib retracement support level, falling between $1,600 and $1,725. This trajectory also aligns with the channel’s support line.
Upon reaching this point, a significant upward surge, potentially boosting the ETH price to a minimum of $2,500, is predicted.
