Ethereum Price Analysis: ETH To Go Down To Fulfill Head and Shoulders Pattern?
Daily Ethereum ETH Price Forecast
- Ethereum price had a bullish session after three straight bearish sessions.
- ETH crashed by ~50% between May 12 and May 23.
Between May 27 and May 29, the Ethereum price dropped from $2,730 to $2,275 – losing almost $450 in its overall valuation. Prior to that, ETH rose by $600 as it rose from $2,100 to $2,730 from May 24 to May 26. This mini rally followed a major crash, wherein ETH plunged from $4,200 to $2,088 – losing 50% in its overall valuation.
Ethereum Price Forming Heads and Shoulders?
This Sunday, the Ethereum price jumped from $2,280 to $2,415 – to make up for this Saturday’s losses. However, this bullish surge seems pretty temporary as the MACD tells us that market momentum is still bearish.
Image: ETH/USD daily
When you zoom out and look at the daily Ethereum price chart, you can’t help but notice the head and shoulders pattern forming. It looks like to fulfill this pattern, ETH is going to drop some more.
Image: ETH/USD daily
Looking at IntoTheBlock’s IOMAP, Ethereum price overcame a strong level at $2,400. Previously, at this level, around 345,000 addresses had around 1.2 million ETH tokens.
Ethereum Gas Price Going Down
“#Ethereum $ETH Median Gas Price (7d MA) just reached a 5-month low of 52.079 GWEI Previous 5-month low of 52.590 GWEI was observed on 06 May 2021."
Ethereum Exchange Withdrawals Reach A Yearly Low
"#Ethereum $ETH Number of Exchange Withdrawals (7d MA) just reached a 1-year low of 558.173 Previous 1-year low of 558.571 was observed on 29 May 2021."
Total Value of ETH 2.0 Deposit Contract Reaches ATH
"#Ethereum $ETH Total Value in the ETH 2.0 Deposit Contract just reached an ATH of 5,199,234 ETH."
Crypto Analyst Lark Davis Is Bullish On Ethereum
Crypto analyst Lark Davis recently said that he could see in the future a $2 trillion market cap for Ethereum ($ETH). In a new YouTube video, Davis noted that Ethereum is not that far off from reaching Apple’s market capitalization of $2 trillion. Davis highlighted Ethereum’s involvement in decentralized finance (DeFi) and non-fungible tokens (NFTs).
According to The Daily Hodl report, he said:
I would say in the future a $2 trillion market cap for Ethereum is not actually that insane. I mean, right now Apple… the market cap currently for Apple is just a little over $2 trillion, almost $2.1 trillion. So we could see something like Ethereum which is the settlement layer of the cryptoverse right now with NFTs and DeFi and daily settlement, for payments and stuff like that. Although I’m crazy, I think this bad boy has a lot of room left to run.
Davis mentioned that decentralized exchanges were blowing up in volume, giving bullish signals for Ethereum. He mentioned that the decentralized exchange volume exploded "up 8,500% in the last 12 months." Davis also highlighted the attention being given to Ethereum by Ark Invest’s Cathy Wood:
Cathy Wood’s Ark Invest, they for the first time ever, have bought Ethereum. They bought 639,000 shares of Grayscale’s Ethereum Trust...That means that Ark Invest has been looking into Ethereum more and more. They have been understanding what the value propositions of Etheruem are. And this is them literally putting their money where their mouth is and buying Ethereum and getting direct exposure to the asset class.
Ethereum Price Is Expected To Reach These Levels
The buyers will need to overcome the $2,600 resistance barrier to continue this upward surge. On the other hand, ETH needs to protect the $2,400 at all costs.