The Ethereum course is currently trading at around $ 1,215. The price has bounced back slightly from the year low of around $ 993 on June 18, 2022, but is still at a very low level compared to 2021.
At first glance, the ETH price is behaving in the same bearish way as the Bitcoin course and the other top altcoins. However, there are some rising signs hoping that a reversal of a bullish trend for ETH could happen soon.
Ethereum main support is at $ 1,700
So every Ethereum buyer is shown something very interesting on the daily chart. While the course has corrected sharply in recent months and has lost about 70 percent in value in the last six months alone, ETH / USD has a very important support zone so far. We’re talking about the $ 1,000 mark. It was tested and surpassed, but the bulls immediately responded with a counterclaim.
But caution is advised. After all, ETH had already surrendered support zones earlier. For example, the region recently dropped prices around $ 1,700. The Ethereum course tested this three times during the major correction phase between May and July 2021 and it was still there and pushed ETH / USD up again. This time it was different.
Even in the current correction phase, Ethereum has so far been able to confirm important support. However, only one test of this level has been done so far.
A big difference compared to the price of Bitcoin is that Ethereum is not yet lower than it was in the summer of 2021. Because the price of Bitcoin has already fallen below $ 27,000 and is therefore much lower than about $ 29,000 since May to July 2021 (see chart above).
Opportunity for W formation: 350 percent potential increase
From a charter standpoint, this is an important difference between the Bitcoin and Ethereum charts. Because ETH / USD still has a chance to maintain this higher minimum, creating a potential bullish double bottom or W formation on the daily chart.
However, there is still a long way to go before ETH / USD can confirm this extremely bullish pattern. Because the price must not only form a higher low in the first step, but in the second step it must also break through the high point between the two lows and declare it as a new support.
However, that highest level is only the full-time high of November 10, 2021, nearly $ 4,870. On this path, ETH / USD must first break a few key resistance zones. Strong resistance for Ethereum bulls is located around $ 2,100, $ 2,700, $ 3,300 and $ 4,000. So it’s a medium term case for the Ethereum course that is unlikely to be achieved in the coming weeks.
Crypto Price Forecast: Huge Bitcoin Forecast Revealed As Ethereum, BNB, XRP, Solana, Cardano, Luna And Avalanche Swing https://t.co/gLdrd9tk7H
– Daily Round Up (@ DailyRoundUp1) March 20, 2022
However, if Ethereum breaks the clear bearish mood in the market and initiates a bullish trend reversal, this broken W formation is still a very exciting scenario for the price of Ethereum. Because the potential price target should motivate buyers of the cryptocurrency. For this, the distance between the low point and the high point on the daily chart is determined and the difference is added to the high point or the high point all the time.
This has resulted in an incredible $ 8,000 technical price target for Ethereum. That would be a pump nearly 350 percent from current levels. This could offer a great return opportunity for investors. And traders with experience in crypto exchanges could often increase the upside movement through smart positioning and the use of leverage, which would significantly increase profits.
Head and Shoulder formation can trigger another Mega Correction
But of course investors should not become too euphoric now, as it is not at all certain whether this scenario will come to an end. If the Ethereum chart does not rise fast again as soon as possible, the W formation would no longer be a valid pattern for ETH / USD. In this case, however, another major correction could be announced.
A bearish head and shoulders pattern on the daily chart has already been quickly confirmed in the Ethereum chart in recent weeks. The neckline of this gel was the $ 1,700 mark and led the Ethereum price to those lows due to a confirmed breakout below this price region.
So now it’s time to climb. The next important support for Ethereum is around $ 1,430, the highest ever from the 2018 bull market. At this point at the latest, bulls should try to stop the slide by reversing trend, or otherwise there will be medium term price targets of less than $ 1,000 for the price Ethereum would even imagine.
Ding Fall: All Time High Price Target 2021
However, there is another interesting formulation on the Ethereum chart that gives buyers hope that this horror story will not come to an end. A falling wedge is visible in the course in which ETH moved from November 2021 to May 2022. The price of Ethereum tested the formation support zone on May 12 and shortly thereafter managed to break above the resistance line.
On May 27, Ethereum also confirmed this breakout by repeating the old resistance line, thereby meeting the necessary conditions for this bullish pattern to be valid for the price. The technical price target of this formulation is at its starting point and thus in the ever-high range of about $ 4,870. If this happens, the price could rise by more than 170 percent compared to the current price level.
Decided in November 2022 only?
However, the aforementioned drop wedge can be pulled even further, so that the resistance line may be even higher and the breakout from the pattern has not yet occurred. In this case, ETH / USD could even move in formation until November 2022, even theoretically correcting to the $ 1,000 area without losing support.
The pattern is also still valid, although ETH / USD failed to keep the stated support level at $ 1,700. While the aforementioned W formation for the Ethereum chart and the price target of more than $ 8,000 should no longer be a realistic scenario, everything is still in balance on the falling wedge. The coming days and weeks will answer the question of whether Ethereum can start a bullish trend reversal in the short term, whether the correction will continue or whether investors can even wait until November before the price of Ethereum can rise again.
However, those who invest Ethereum in the long run should not make their purchase decision dependent on the development over a few months. More interesting here is the question of how the asset will develop over the years and what return opportunities it offers. And here the analysts as a whole are still bullish.
Therefore, Wallet Investor predicts that ETH / USD may rise to more than $ 3,600 within the next 12 months. That would still be an increase of about 100 percent at the current level. In the long run, a price target of more than $ 10,000 per ETH signal is issued until 2027.