Technology

Has Ethereum Price Bull Market Collapsed, Or Will It Continue? – Crypto News

Published

2 years ago

July 2, 2024

Dripp

The recent downturn in the market impacting Ethereum price, Bitcoin, and other altcoins paints a grim picture heading into the second half of 2024. As per CoinGecko data, Ether lost 8.8% in the last month and tested support at $3,230.

Meanwhile, the ETH/BTC pair hovered at a 0.054 ratio during the US session on Monday. It seemed ready for a larger breakout but only if Ethereum gained more strength against Bitcoin, thus breaking above the resistance at 0.055.

Despite the rebound to $3,445, the technical outlook may not be convincing enough especially with resistance foreseen at $3,500, $3,600, and $3,800. Key fundamentals like the decentralized finance (DeFi) Total Value Locked (TVL), and the crypto fear and greed index reinforce the bearish grip on ETH.

The immediate support at between $3,200 and $3,300 must hold this week to prevent further losses to $3,000, considering it may be too early to rule out an extended drop to the next key level at $2,800.

ETH/BTC Price Prediction: Is Ethereum Price Gearing Up For 25% Breakout

Ethereum has in the last few weeks drastically gained against the largest cryptocurrency such that the ETH/BTC trading pair tested the inverse head and shoulder (H&S) pattern’s neckline resistance twice.

Ether bulls seem ready to continue with the uptrend above 0.055—in a move that could ignite a 25% rally to 0.069. An inverse H&S pattern is bullish and often signals the end of a downtrend and the beginning of a sustainable uptrend.

Nevertheless, the pattern remains unvalidated until the price breaches the neckline resistance. In the ETH/BTC pair’s case, this is the seller congestion at 0.055.

ETH/BTC price prediction chart | Tradingview

The Exponential Moving Averages (EMAs) add credence to the likely breakout, with the 20-day EMA holding as the immediate support at 0.05461. A golden cross on the same daily chart lingers as the 50-day EMA in red crosses above the 200-day EMA in purple.

On top of the golden cross, the Relative Strength Index (RSI) shows a lot of potential for the trading pair, holding above the midline at 50. Should the RSI close the gap to the overbought region at 70, the path of least resistance will remain upwards, further accentuating the breakout to 0.069.

What To Watch Out For In Ether Price This Week

A breakout is also looming in Ethereum price based on the technical structure backed by a soon-to-be-sent buy signal from the Moving Average Convergence Divergence (MACD) on the daily chart.

Despite the encouraging bullish outlook, ETH price holds between a rock and a hard place, with support provided by the 0.5% Fibonacci ratio and a confluence resistance established at $3,467 by the 20-day EMA and the 50-day EMA.

If the hurdle caves in, traders would push the bullish case, targeting a breakout to $4,000 this week. However, such a move will not happen in a vacuum, considering the two resistance levels at $3,600 and $3,800.

With the approval of Ethereum ETFs imminent in July, market sentiment is expected to improve exponentially and this might catalyze the rally above $4,000. The CoinGape Ethereum price prediction shows a vivid map for ETH’s recovery to the previous all-time high. It is possible Ether could debut above $5,000 reaching a new record high.

Frequently Asked Questions (FAQs)

Ethereum price has likely bottomed with support at $3,200. However, the following weeks will determine the direction the coin takes.

The technical structure shows that Ethereum still has room for growth. With spot ETH ETF approval imminent, there’s a high chance the bull run has not started.

This is an investment product that tracks the real-time price of assets like Bitcoin and Ethereum. It allows investors to seek exposure to digital assets without buying physical coins on crypto exchanges. ETFs are purchased directly on stock exchanges.