Inflation fears and concerns about further interest rate hikes by the US Federal Reserve have also driven down the price of Ethereum. Over the past few days, ETH/USD is down 8 percent and is trading around $1,600 at the time of publication. Thus, the top altcoin by market cap failed to break the upside resistance at the $1,740 area.
Where is Ethereum headed now? Is this the start of a bigger selloff or is now a good time to buy Ethereum at a cheaper price? Kryposzene.de looks at the current chart development, analyzes possible short-term price targets for ETH/USD and shows the latest Ethereum 2023 price forecasts from analysts.
Ethereum course stronger than BTC
Current figures from coincodex.com show that the Ethereum course seems to be slightly more stable than the Bitcoin course despite the recent correction. The minus within the last 24 hours for ETH is only about 2.9 percent, while the decrease in Bitcoin is slightly stronger at 3.4 percent. Other altcoins can also hold up reasonably well. This is quite unusual, since altcoins are considered much more volatile and usually see stronger selling in proportion to the price of Bitcoin.
Currently Ethereum is trying to stabilize at $1,600. With volatility tending to be lower on the weekend, expect the price to consolidate over the next two days before another price trend emerges on Monday. American stock markets are likely to set the tone here again.
Ethereum must now maintain this support
If the correction of the last few days continues due to increased inflationary concerns and the fear that the Fed will raise interest rates further, the price of Ethereum should not be allowed to hold the 1,600 mark anymore. So where are the next price targets?
Technical analysis of the ETH/USD daily chart shows that Ethereum is currently sitting on a key support zone, which has served as a key support and resistance zone on and off since July 2022. Accordingly, the bears are struggling at this level increasing the price pressure.
However, if ETH/USD sees another selloff, the price could quickly drop to the $1,420 area. Because the next significant support is in this zone, which ETH/USD tested several times over the past year and became a strong resistance in the past few months before being broken by the bullish start of 2023.
The latest in this zone, Ethereum should get additional support first. However, that could mean another 10 percent correction initially. Holding $1,420 is critical, otherwise another sell-off to the next support level at $1,280 could follow. In this bearish scenario, Bitcoin buyers would see a 20 percent drop from current levels.
Major Chart Pattern for Ethereum: $550 Price Target?
But is this story likely? What other possible price targets does the technical chart analysis show?
Looking at the daily chart of ETH / USD, it can be seen that the altcoin started to move in a symmetrical triangle formation in May 2022. Inside the neutral pattern, the price of ETH has tested the multiple support and resistance lines without breaking out of formation. Currently, ETH failed again in an attempt to break through the resistance to the upside. A retest of the support zone could bring Ethereum price back to around $1,300 price levels. This coincides with the previously mentioned support zone at $1,280, which could be important in a correction.
In theory, ETH/USD can continue to stay within this symmetric triangle until the end of June 2023 before a directional decision is expected. The bullish price target of the ETH/USD formation could take it to $3,750-$4,100 depending on the timing of the breakout. However, a correction could drop Ethereum to levels between $550 and $620. Ethereum thus fell well below the 2022 low at around $880.
Trading options: 140 percent increase or 60 percent correction?
It is also important for traders on crypto exchanges to observe this formation. Because in the bullish case, the price of ETH could explode another 140 percent, and in the bearish case there could be a selloff of 60 percent and more. This gives experienced traders great short and long options that can be even more profitable with leverage.
Chart indicators may provide additional indications regarding the price trend for the Ethereum course. What is bullish is that the price of Ethereum is higher than the EMA Ribbons, an indicator popular with analysts that shows moving averages of prices over different time periods. As long as ETH/USD stands above it, it will be a good sign of bull strength.
In addition, Ethereum left the overbought area according to the Relative Strength Index. The RSI currently only has a value of around 49 so it is right in the neutral zone. This means that there is the potential for further price increases, but also further corrections. An asset is considered overbought at a value of 70, oversold at a level of 30.
The buy signal issued by the hash ribbons for Ethereum price in mid-January remains bullish. In the past, this buy signal has often been followed by a sustained rally, for example in the 2020-2021 bull market.
Price forecast: Ethereum price can also rise
How do analysts assess Ethereum’s further course? What are the current price projections for 2023?
According to the Digital Coin Price forecast, Ethereum buyers could see huge price increases this year. A maximum price of around $3,500 is expected for 2023. Compared to the current level, buying ETH could bring in a huge return of around 120 percent.
The forecast at Coin Price Forecast is much more cautious. Accordingly, the mark of about $ 2,050 for Ethereum in 2023 is the maximum price. This would only be a growth of about 25 percent. Analysts of the financial blog changelly.com are more optimistic. According to this, Ethereum can reach prices around $2,800 in 2023. This corresponds to an increase of at least 75 percent compared to the current price. Wallet Investor’s case is very different: According to this, the price should fall below $300, which would be a huge crash.
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