The central theses
- Ethereum prices have soared more than 16% in the past three days after a consolidation pattern erupted.
- While there is more room to go up, the uptrend could be nearing exhaustion.
- An increase in selling pressure could cause ETH to decline to $ 1,600 before moving further towards $ 2,000.
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Speculation about the upcoming Ethereum upgrade in July is mounting. While market participants are mostly bullish, the price of ETH could rise before falling quickly.
Ethereum visits previous all-time highs
After a two-week consolidation phase, Ethereum is back in the spotlight. The second largest cryptocurrency by market cap broke out of a symmetrical triangle on March 6, which has since risen by more than 16%.
The height of the y-axis of the triangle suggests that ETH prices could rise by a further 5.50%. A further increase in buying pressure could therefore push ETH to hit a target of $ 1,960.
ETH / USD on TradingView
Warning signs appear
While the recent upswing appears to have been fueled by speculation Ethereum “buyback” updateInvestors looking to restructure fees need to remain cautious.
The Tom Demark (TD) sequential indicator suggests that Ethereum may be retraced after reaching the USD 1,960 symmetrical triangle target.
This index is about to present a sell-signal on the 12-hour chart of ETH. It could develop into a green nine candlestick, indicating a retracement of one to four candlesticks.
It’s worth noting that the TD setup was incredibly accurate to anticipate local spikes on Ethereum trends. The three sell signals that this indicator has presented since the beginning of the year have all been validated, which led to significant corrections.
Therefore, it is imperative to consider the short-term pessimistic forecast before entering any long positions.
ETH / USD on TradingView
Transaction history shows that nearly 780,000 addresses previously bought over 12 million ETH at an average price of $ 1,600. In the event of a correction, this support barrier must remain in place to prevent a sharp decline towards USD 1,300.
Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.
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