Ethereum (ETH) has approached critical resistance. Waiting for a breakthrough
The crypto asset Ethereum (ETH) is currently on the verge of a crucial moment, as it has reached a significant resistance level.
All eyes are on the price charts, eagerly waiting for a potential breakthrough. ETH is currently facing a major challenge as it struggles to overcome significant horizontal resistance and a long-term downside resistance line.
In more positive news, Ethereum developers successfully activated the long-awaited Shapella hard fork today. In early March, they implemented the ERC-4337 standard on the mainnet, which is a major blockchain improvement that makes it easier to access locked wallets.
In addition, on February 28, they performed a successful Sepolia testnet upgrade, simulating the upcoming Shanghai hard fork scheduled for April.
Today, On March 14, the Shapella hard fork will be launched on the Goerli testnet. This milestone marks the first ever public testnet rollout, allowing users to test full and partial ETH withdrawals.
Ethereum has reached a significant long-term level
The technical analysis of ETH’s weekly chart is showing some promising signs. One of the main reasons for optimism is the price’s behavior around the $1400 horizontal area, which has held strong since 2018 despite two price swings in 2022 (as indicated by the red circles).
During the 2023 rally, the price managed to turn this area into support and tested its strength last week. Furthermore, the weekly RSI has broken through its resistance line and is currently holding above the 50 mark, which is a bullish signal.
A bullish RSI breakout is typically an indicator of a potential price breakout. This means that ETH could break through the descending resistance line that has formed from the all-time high and climb up to the next resistance level at $2,000.
Alternatively, a bounce off this line could prompt a retest of the $1,400 area. Overall, the analysis suggests that the market sentiment for ETH is currently bullish, with a potential for a price breakout in the near future.
TradingView Will ETH make a bullish breakout?
Could ETH experience a bullish breakout soon?
The daily chart analysis seems to support this possibility. The chart shows that ETH has bounced off the support line of the previous ascending parallel channel (as indicated by the green icon) and has started to trend upward.
Currently, the market is attempting to break through the $1680 resistance area, which would also mark a breakout of the long-term downward resistance line mentioned earlier. If successful, this could set the stage for ETH to reach $2000.
A bullish RSI breakout (as shown by the green line) also supports this scenario. However, a potential price rebound could lead the market towards the $1,400 support area instead.
All things considered, it seems that the market sentiment for ETH is currently bullish, with the possibility of a bullish breakout in the near future.
Trading View
Based on current market trends, it appears that the most probable scenario for Ethereum involves a successful breakout of the resistance area and a subsequent climb towards $2000.
However, if this breakout attempt fails, it would negate the bullish outlook and could potentially result in a drop towards the $1,400 support level.
Therefore, it’s important to keep a close eye on how the market develops in the coming days to see whether the breakout attempt is successful or not.