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Ethereum Price Prediction: ETH Consolidates Before Jumping To News Levels

3 Min Read
Last Updated March 25th 2021

Daily Ethereum ETH Technical Analysis

  • The Bollinger Band in the daily chart shows decreasing price volatility,
  • The IOMAP shows a lack of strong resistance barriers on the upside.

 

After jumping up from $1,050 to $1,230, it seems like Ethereum has managed to meet a barrier of sorts. As of now, the price is continually flirting around the $1,230 resistance barrier. Is this going to push the price down? Or is it a temporary pitstop before it jumps back up again? Let’s take a look.

 

Ethereum Price Goes Through Reduced Volatility

Repeated rejections at $1,230 may scare the holders into thinking that the price should plummet considerably. However, technical analysis shows us otherwise. As you can see, the Bollinger Band has started constricted considerably. This shows us that the Ethereum price is going through a period of low volatility. As such, wild swings are not expected.

eth/usd daily chart 011821

Image: ETH/USD daily chart

Along with that, check out IntoTheBlock’s IOMAP. As can be seen, there is a lack of strong resistance barriers on the upside. This means that if the buyers take control and break past the $1,230 resistance barrier, the Ethereum price should reach $1,450, aka, the upper Bollinger Band in the daily chart.

ethereum volume chart 011821

Image: IntoTheBlock

When we see the 4-hour chart, it gives further credence to our Ethereum low volatility theory. As you can see, the two latest candlesticks are trending between the 20-bar and 50-bar SMAs.

eth/usd 4-hour chart 011821

Image: ETH/USD 4-hour chart

 

Ethereum Dex Volumes Saw $39 Billion Last Month

Ethereum-based decentralized exchange (dex) platforms have witnessed massive demand in the past 30 days. During this period, dex trade volumes have reached $39 billion in swaps. Data from Dune Analytics shows that dex applications have witnessed $12 billion in swaps during the last week. However, users face enormous fees associated with interacting with platforms like Uniswap and other dex platforms.

Bitcoin researcher and author, Hasu, recently said that some “defi projects produce nearly as much cash flows from fees as the entire Bitcoin network does.” Bitcoin pundit Brad Mills recently tweeted about paying a $120 dex trading fee. 

Another Twitter user (@fyrejason) shared a picture of the Uniswap fees, calling the massive amount of fees “insane.” 

According to the screenshot, the slowest transaction will cost $40 in ether fees. Despite Ethereum’s colossal lead in the decentralized finance space, many people believe the network will falter if fees are not improved soon.



Ethereum Price Is Expected To Reach What Levels?

The MACD in the 4-hour chart shows sustained bearish momentum. As such, we could expect the Ethereum price to drop to the 50-bar SMA ($1,165) before it rebounds back up. However, the lack of strong resistance barriers upfront could push the Ethereum price up to the upper Bollinger Band in the daily chart ($1,450) if the buyers take control.

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