Ethereum Price Hits $2000 for the First Time in 8 Months; Here’s the Next Possible Target

Ethereum Price Analysis: The ongoing recovery in the Ethereum coin price strictly resonated between the converging trendlines of a rising wedge pattern. In the last three weeks, the bullish rally recorded 17% and reached the $2000 mark for the first time in eight months. Moreover, the buyers also breached the pattern’s resistance trendline indicating a higher possibility of further recovery. 

Key Points: 

• A bullish breakout from the resistance trendline of the rising wedge pattern encourages the Ethereum price to surpass $2000.
• A daily candle closing above $2000 will encourage coin buyers for prolonging recovery.
• The intraday trading volume in Ether is $5.3 billion, indicating a 27% loss.

Source- Tradingview

In theory, the formation of a rising wedge pattern is a potential sign of an upcoming correction. The converging trendline squeezes the prices narrow which eventually breaches the lower trendline and intensifies the selling pressure.

However, in rare cases, the prices may breach the overhead resistance trendline indicating buying pressure is getting more aggressive and a higher possibility for a direction rally. With a 4.25% intraday gain, the buyers end the wedge pattern on a bullish note and reach $2000 psychological resistance

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However, the $2000 level stands for strong multiple-month resistance and thus the Ethereum price may consolidate before giving an actual breakout. During the potential consolidation, the breached trendline could offer buyers a significant footing to prolong the bullish rally.

A potential breakout from $2000 will intensify the bullish momentum and raise the ETH price by 16% to hit $2350.

On a contrary note, a breakdown below the pattern’s lower trendline may offset the bullish thesis.

Technical Indicator

RSI(4-hour): The daily RSI slope breached its last swing highs and rises higher into bullish territory indicating sustained buying in the market.

Bollinger Band: the midline of the Bollinger Band indicator acts as an excellent dynamic support to maintain a sustained recovery.

Ethereum Coin Price Intraday Levels-

• Spot rate: $1999
• Trend: Bullish
• Volatility: Low
• Resistance level- $2000 and $2350
• Support level- $1850 and $1700