Ethereum Price Prediction: ETH Faces Immediate Stiff Resistance
Daily Ethereum ETH Technical Analysis
- Ethereum price haces strong resistance at $2,325.
- The MACD shows increasing bearish market momentum.
After reaching a new all-time high of $2650 on April 22, the Ethereum price had two straight bearish days and dropped to $2,205. During this downward surge, ETH managed to flip the 20-day SMA from support to resistance. Let’s see what happens next with technical analysis.
The Ethereum Price Shows Mixed Sentiment
The Ethereum price has recovered to $2,310 this Sunday following two consecutive bearish days. The MACD for ETH in this timeframe shows increasing bearish market momentum. However, the parabolic SAR has flipped from negative to positive. This tells us that ETH has flashed both a positive and negative signal.
Image: ETH/USD daily
Ethereum price faces an immediate strong resistance barrier at $2,325. Previously, at this level, around 40,000 addresses had purchased over 7.6 million ETH tokens.
Ethereum Gas Price Going Down
Wu Blockchain shared the following chart and the tweet to talk about the decreasing gas prices.
“In the past two days, the gas price of Ethereum has dropped significantly, has stabilized at around 50 Gwei. The reasons include: Gas Limit increased from 12 M to 15 M, Flashbots' MEV solution and the BSC boom to reduce Ethereum's traffic.”
Ethereum Active Addresses Hits New High Following ETH All-Time High
The number of Ethereum active addresses has recently surpassed previous highs from January 2018 and November 2020. The surge in activity on the network came around the same time Ether hit a new all-time high.
According to Coinmetrics, active addresses on the network rose to a new all-time high of 771,000 addresses. This number is higher than records from January 2018, which saw 735,000 active addresses, and November 2020, which saw a new high set at 739,000.
The rise of Initial Coin Offerings (ICOs) in late 2017 was likely the reason for the notable growth in the number of Ethereum address peak in early 2018. 2020 saw a surge in decentralized finance (DeFi) applications and decentralized exchanges (DEX). This culminated in a new all-time high in Ethereum active addresses on the blockchain in 2020.
Ethereum has seen bullish price action in 2021, continuously breaking new highs. Just recently, Rothschild Investments purchased 265,302 shares in Grayscale’s Ethereum Trust, amounting to $4.75 million.
While the Ethereum network is currently battling high gas fees, the network is due for several upgrades that aim to mitigate the high costs of transactions. Following the activation of the Berlin fork, the London fork is set to occur in July, which is likely a strong indicator of more bullish market behavior towards Ethereum in 2021.
Ethereum Price Is Expected To Reach These Levels
Ethereum price needs to conquer the $2,325 resistance barrier to reach the $2,400 psychological level.