Ethereum Price Prediction: ETH Buyers Retreat From The $2,500 Psychological Level
Daily Ethereum ETH Technical Analysis
- Ethereum price jumped by ~$1000 since March 25.
- The MACD shows sustained bullish momentum.
Since March 25, the Ethereum price rose by almost $1,000, climbing from $1,570 to $2,450 - reaching an all-time high of $2,547.56. ETH reached a new all-time high earlier today ($2.398). However, ETH has since retreated from the $2,500 psychological level and dropped down.
Ethereum Price Trends In Upward Channel Formation
Since March 25, the Ethereum price was trending in an upwards channel formation. The MACD shows increasing bullish momentum, while the relative strength index (RSI) has dipped back into the neutral zone. These two factors show us that ETH will trouble the $2,500 line.
Image: ADA/USD daily
Looking at the IOMAP, we can see that a strong support wall lies at $2,100, wherein 253,000 addresses had purchased 10.6 million ETH tokens. This level is robust enough to absorb a lot of selling pressure.
Ethereum Price Bullish On-Chain Analytics
Ethereum’s address activity shows a clear rise in the past year. Here is another interesting chart to look at.
This chart shows the average age of invested dollars in Ethereum, which clearly indicates new money has come in and dormant investments are moving.
Ethereum Berlin Upgrade Fixes Gas Price Problem
The Ethereum Berlin upgrade went on April 14 and it is the first update since Istanbul went live over a year ago. The upgrade came at a time when ETH’s price exceeded previous records.
Gas prices on Ethereum were incredibly high in recent times due to the network's increasing price point and the growing demand for assets on the platform. In late February, transaction fee averages reached almost $40, which was an all-time high. Berlin upgrade seeks to provide answers to increased gas fees and complex transaction processes on the Ethereum network through the Ethereum improvement proposal (EIP).
The upgrade features four protocols that aim to mitigate some of the challenges in the Ethereum ecosystem. The protocols released in the April upgrade include EIP-2565, EIP-2929, EIP-2718, EIP-2930.
The Berlin upgrade is a step towards the Ethereum 2.0 transformation and the new upgrade improves the way in which the network processes transaction fees. Gas fees will now be sent to the network and burner as opposed to being sent to the miners.
As the demand for DeFi, altcoins, and NFTs surges, the crypto community is anticipating to see how the Berlin upgrade would make transactions run more smoothly and if gas prices would come down.
Ethereum Price Is Expected To Reach These Levels
Ethereum price will likely retest the $2,500 psychological level soon, since the sentiment about the buyers seems to be higher than ever before.