Ethereum Price Prediction: Odds stacked against bears’ comeback, but can ETH bulls retest $2,000?
- Ethereum price shows a 37% year-to-date, which is almost equal to that of Bitcoin.
- The upside for ETH could extend up to $1,820, but if the momentum indicator continues to wane, this could be a top signal.
- Invalidation of the bearish thesis will occur if ETH flips $1,820 into a support floor while the RSI momentum produces a higher high.
Ethereum price has shown an exponential increase over the last three weeks. While a few bearish signs popped up along the way of lower timeframes, bulls continued to triumph. Now, another “sell sign” has been painted on the twelve-hour chart, which forecasts a trend exhaustion move is underway.
Ethereum price and its current state of things
Ethereum price has rallied 37% since 2023 began and is currently hovering around $1,650. This massive ascent has set up two higher highs on January 13 and 20. But the Relative Strength Index (RSI) has formed a lower low above the overbought zone.
This non-conformity is termed a bearish divergence and indicates that the momentum is waning, which could trigger a trend reversal favoring the bears.
While the obvious theoretical outlook would be for Ethereum price to retrace, due to the formation of the equal high at $1,650, there might be a liquidity run, which could produce a third higher high.
In this situation, bulls have a chance to come back by pushing the momentum indicator to produce a higher high as well. If buyers fail to make this happen, investors should start preparing for a trend reversal. The high timeframe support at $1,568 is the level that bears have to overcome in order to build up momentum against buyers.
If $1,568 is flipped into a resistance level, it will open the path for sellers to drive Ethereum price to $1,417, $1,331 and $1,227 support floors.
ETH/USDT 12-hour chart
What should bulls rectify?
As explained above, the chances that Ethereum price goes for another leg-up and set up a potential local top at $1,850. In its journey to collect liquidity resting above $1,650, ETH bulls need to make a comeback that pushes the RSI to produce another higher high in the overbought region.
If successful, Ethereum price could flip the $1,820 hurdle into a support floor. This move will invalidate the bearish thesis provided the RSI supports its ascent. Such a development could also open the path for ETH to retest the $2,000 psychological level.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
