Ethereum Price Prediction: Is Ether on course for $4K?

Saif Naqvi
Ethereum
Source: unsplash

Ethereum was still experiencing aftershocks of a 13% sell-off between 27 December to 30 December. Its value has not yet recovered above the $4K mark yet but has made important developments in the past few days. The price has formed a symmetrical triangle and a key breakout would fuel an upwards run. At the time of writing, ETH traded at $3,759, up by 1% over the last 24 hours.

Ethereum Hourly time frame

Source: TradingView

Ethereum’s price has formed three lower highs and two higher lows over the past few days and it currently oscillates within a symmetrical triangle. Based on the highest and lowest point within the pattern, ETH eyed a 7% breakout in either direction. The contracted nature of the Bollinger Bands further determined that ETH was in the final consolidation phase and a breakout was just around the corner.

For a favorable outcome, ETH would first need to hold above the 23.6% Fibonacci level. From there, a close above $3,780 would need to be backed by good buy volumes if bulls wish to access ground above the 38.2% Fibonacci level. These Fibonacci areas were identified using ETH’s run-up to $4,100 from $3,640 during mid-December. Such a move would see ETH recapture $4k and embark on a fresh uptrend.

On the flip, a new low of around $3,660 can be expected if ETH is unable to hold above the 23.6% Fibonacci area.

Indicators

The RSI’s trajectory has been a little haphazard. Even though it recovered steadily between 28-31 December, a major decline was witnessed soon after. The index currently held around 50 after bouncing back from oversold territory. Moving forward, bulls would have the upper hand if the RSI shifts above 55.

The MACD was clearer in terms of direction. The index has formed higher lows and currently sat above its mid-line. This showed that buyers have outmatched sellers over the past few days.

Conclusion

Ether’s symmetrical triangle carried a bullish preference based on the above-mentioned factors. A move above $3,780 on good buy volumes would carve a path to $4K, provided selling pressure is minimal the 38.2% Fibonacci level.