The price of ETH is currently consolidating in a horizontal range, between the levels of $1650 and $1950.. Given the prevailing short-term picture, price dynamics and wave analysis, it is more likely that Ethereum will continue to move towards the upper boundary of this range and eventually make a bullish break out of it.
our Telegram Channel
Ethereum approaching resistance at $2000
As the results of technical analysis of the weekly chart show, the picture for ETH looks bullish, mainly due to the impressive growth since June 15.
The price had just rebounded from the horizontal support area at $1650 at that time. The subsequent long bottom wick (green icon) confirmed the $1650 area as support and indicated that the buyers were taking the upper hand.
Such wicks are considered bullish because they indicate that sellers have been unable to push the price down.
The price of ETH has rallied since then, hitting a high of $1960. The price is now very close to the $2,000 resistance area.
This is the most important resistance area because it is the last one before the new yearly high. In addition, there is practically no significant horizontal resistance over it. Therefore, if the price of ETH takes this barrier, it can accelerate the growth even more.
Source: TradingView
Technical indicators are also bullish. Weekly Relative Strength Index (RSI), a tool that traders use to assess market conditions, supports price rebound. RSI values above 50 and an uptrend indicate a favorable situation for bulls, and vice versa.
When the ETH price rebounded, the RSI also rebounded to the 50 line (circled in green). This signals a bullish trend. The RSI is in an uptrend, promising the same for ETH.
Ethereum Forecast for July
ETH forecast: wave analysis promises a $2000 break
Wave analysis of the shorter daily timeframe reflects a decidedly bullish outlook for Ethereum.
The most likely wave scenario suggests that the price of ETH began a five-wave upward movement (white) in November 2022. Further, the decline inside the descending parallel channel was a corrective wave two.
The sub-wave analysis is shown in black on the chart and it demonstrates a completed correction.
The sub-wave analysis is shown in black on the chart and it shows a completed correction. The fact that the price rebounded from 0.5 Fibo support confirms this possibility.
So the rise from June 15 is part of the third wave, which is usually the sharpest of the bull waves. A 1:1 ratio of the first wave to the third wave would lead to a rise to $2700. That would mean a 37% rise from current price levels.
The sub-wave analysis (black) suggests the possibility of a short-term pullback, after which the pace of growth could accelerate further.
Source: TradingView
Despite this bullish outlook for ETH, a drop below the second wave low (red line) at $1625 would indicate that the trend is bearish.
In that case, the price is expected to draw down to the next closest support at $1300.
7 token splits