Ethereum Price Prediction: Smart money absorption targets $1,800


  • Ethereum price has been consolidating for two weeks after rallying 40%.
  • ETH could extend gains into the mid-$1,800 zone.
  • Invalidation of the bullish scenario is a breach beneath $1,522.

Ethereum price is in a two-week consolidation stage likely to resolve with an explosive move. Technical analysis is used in this thesis to forecast Ethereum's potential price trajectory.

Ethereum price targets $1,800

Ethereum price has been trading within the mid-$1,500 to mid-$1,600 for roughly two weeks. The congestion occurs after a 40% uptrend earlier in the month. Congestion patterns usually surface near mark reversals, but they can also occur before the next leg up. In this scenario, Ethereum is showing signs to suggest the latter will occur.

Ethereum price currently auctions at $1,592. At the time of writing, the ETH price hovers between two key indicators, the 8-day exponential and 21-day simple moving average. The Relative Strength Index (RSI), an indicator used to gauge strength of market participants, is also coming down to a key level of support. The bullish divergence displayed on the 12-hour chart could suggest that buyers are absorbing the ETH tokens sold by profit-taking bears.The two-weeks consolidation could suggest smart money is involved and keeping the Volume indicator relatively sparse in transactions.

The consolidatijng range has a 9% spread between the $1,550 to $1,660 high. Traders may be able to use this range to forecast the next target zone. Thus, if the market is genuinely still bullish, a 9% upswing toward the mid-$1,800 zone stands a fair chance of occurring.

tm/eth/1/31/22

ETH/USDT 12-hour chart

Traders should wait for a breakout past the upper end of the range to confirm that a rally is underway. However, if graders are looking into the market now, invalidation of the uptrend thesis would be a breach below the range low at $1,522. A barrier breach couldn't induce a much steeper decline targeting $1,400 and the mid-$1,300 zone. The Ethereum price will decline by 15% under the bearish scenario.

 


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