Ethereum Price Forecast: ETH Technical Breakout Sets The Pace For Upswing Beyond $2,000

By John Isige
Published March 9, 2021 Updated March 9, 2021
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Ethereum Price Forecast: ETH Technical Breakout Sets The Pace For Upswing Beyond $2,000

By John Isige
Published March 9, 2021 Updated March 9, 2021
  • Ethereum prints a cup and handle pattern on the 4-hour chart, paving the way for an upswing above $2,000.
  • Ether is in the hands of the bulls, as cemented by the MACD indicator.

Ethereum has come out of the woods and is glancing toward a new all-time high past $2,000. The flagship smart contract token had been stuck beneath $16,000 following the breakdown to price levels marginally below $1,300.

Recovery was an uphill battle mainly because of the seller congestion between $1,600 and $1,650. Trading above the 200 Simple Moving Average (SMA) also validated the ongoing uptrend. However, the biggest impact is the cup and handle pattern on the 4-hour chart.

The pattern is characterized by a cup that takes the shape of the letter “u” and a handle slightly down drifted. This pattern is considered a bullish signal in technical analysis. As the handle nears maturity, trading volume decreases.

The pattern can form in a few weeks, but some can take up to 65 weeks to develop. Note that the volume is expected to increase as the price nears a breakout, likely to test the previous high.

ETH/USD 4-hour chart

Ethereum is exchanging hands at $1,853 at the time of writing. The least resistance path seems upwards. Gains beyond $1,900 will bring Ether closer to $2,000, while the cup and handle pattern’s impact will push the price to new all-time highs.

The Moving Average Convergence Divergence (MACD) has reinforced the breakout as it moves higher within the positive region. Besides, the MACD cross above the signal line is also a huge bullish signal.

Ethereum intraday levels

Spot rate: $1,850

Relative change: 15.5

Percentage change: 0.86

Trend: Bullish

Volatility: High

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1154 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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