Ethereum Price Analysis: ETH Technical Levels and On-Chain Metrics Call for $2,500

Daily Ethereum ETH Price Forecast

Last Updated July 23rd 2021
2 Min Read
  • Ethereum's bull's eye step above $2,000 could trigger massive gains to $2,500.
  • The increase in the number of new addresses joining the Ethereum network is a bullish signal.
  • ETH retreat is around the corner based on the TD Sequential indicator' sell signal.
  • Ethereum has closed in on $2,000 but failed to break the resistance at this same level. The pioneer altcoin is dancing at $1,990 at the time of writing. Despite the immediate hurdle, bulls remain persistent with the mission to make a real break beyond $2,000.

    Ethereum Eyes New Record Highs

    Ether has printed an ascending parallel channel on the four-hour chart, in addition to the seller congestion at $2,000—the channel's upper boundary limits movement. A break above these two hurdles would see Ethereum spike massively toward $2,500 due to the syndrome of the fear of missing out (FOMO).

    ETH/USD Four-Hour Chart

    eth/usd 4-hour chart 040221

    The Moving Average Convergence Divergence (MACD) hints at the uptrend remaining intact in the near term. For instance, the MACD line (blue) has settled above the signal line. This shows that the trend is mainly in the bullish court.

    Consequently, a golden cross pattern on the four-hour chart has emerged. A bullish pattern comes into the picture when a shorter-term moving average crosses above a long-term moving average. For example, the 50 Simple Moving Average (SMA) has crossed above the 100 SMA, signaling a bullish outlook.

    IntoTheBlock's "Daily Active Addresses" metric vividly shows that Ethereum is gaining traction in adoption. The number of new addresses has soared from a 30-day low of 135,700 to the prevailing 194,000. Advancing network growth is a bullish signal for both the smart contract token and the general network.

    Ethereum Network Growth

    Ethereum Network Growth

    Looking at the Other Side of the Picture

    The TD Sequential indicator has flashed a sell signal on the four-hour chart. The call to sell was presented in a green nine candlestick. If validated, Bitcoin may drop in one to four four-hour candlesticks, marking the beginning of a downtrend.

    ETH/USD Four-Hour Chart

    eth/usd 4-hour chart 040221

    It is also essential to realize that if the hurdle at the upper edge of the channel fails to break, overhead pressure will rise. On the downside, support has been envisaged at the middle boundary, preventing losses under $1,900. If push comes to shove and the bearish leg extends further, we are likely to see a breakdown to $1,800.

     

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