Will Bitcoin Recovery Push Ethereum Price to $2000 this Week?

On March 17th, the Ethereum coin price gave a massive breakout from the resistance trendline of a symmetrical triangle pattern. Completion of this continuation pattern, the ETH price is set to reach an ideal bullish target of $2800. However, is the ongoing recovery cycle ready to reach the mentioned target or there are more roadblocks ahead?

Key Points: 

• The formation of a falling wedge pattern threatens ETH with a 10% fall
• A bearish divergence in the daily RSI slope increases the downtrend possibility for Ethereum
• The intraday trading volume in Ether is $10.5 billion, indicating a 68% gain

Source- Tradingview

On March 28th, the Ethereum coin price rebounded from local support of $1700 with a bullish tweezer bottom pattern. The resulting recovery has surged the coin market value by 12.5% within the last two weeks where it currently trades at $1918.

However, in the daily time frame, the ongoing recovery is resonating between two converging trendlines revealing the formation of a rising wedge pattern. Using the pattern’s support trendline, the buyers are pushing the price higher and may continue to do so until the pattern is intact.

However, in theory, this pattern offers a significant correction once the prices breach the support trendline. Thus, a potential downfall could tumble the prices 11% down to revisit the $1700 mark.

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Anyhow, in response to this pattern, the potential traders should not short-sell until the prices break down from the support trendline. The Bitcoin price recently reclaimed the $30000 psychological mark recuperates the recovery sentiment in the market and may encourage the ETH price to breach the overhead trendline.

If the price gives a daily candle closing above the trendline, the accelerated bullish momentum will drive the price to $2360, $2500, and the aforementioned target of $2800.

Technical Indicator

RSI: contrary to the rising prices, the daily RSI slope moving sideways indicates weakness in bullish commitment which could lead to support trendline breakdown.

EMAs: the 20-day EMA stands as a strong support assisting buyers to maintain the bullish trend.

Ethereum Coin Price Intraday Levels-

• Spot rate: $1919
• Trend: Bullish
• Volatility: Low
• Resistance level- $2020 and $2151
• Support level- $1835 and $1700