Ethereum Price Prediction: ETH Retreats From The $3,500 Psychological Level
Daily Ethereum ETH Technical Analysis
- Ethereum price has re-entered the Bollinger Band.
- The RSI is still in the overbought zone.
- The relative strength index (RSI) is still in the overbought zone.
- The Bollinger band is expanding, which indicates increasing volatility.
Ethereum price has managed to chart ten green candlesticks out of the last twelve between April 25 and May 6. During this surge, ETH jumped from $2,200 to $3,480 – climbing by nearly $1,300. During this surge, Ether has been hugging along the upper Bollinger band, before it broke above it four days back.
Bears Push Ethereum Price Back Into Bollinger Band
The Ethereum price was trending above the Bollinger and the relative strength index (RSI) is hovering in the overbought zone. These two signals tell us that ETH was overpriced, which inevitably triggered a bearish correction. As things stand, ETH may drop quite considerably, because of the following reasons:
Image: ETH/USD daily
On the downside, Ethereum price has a robust support wall at $3,400 wherein nearly 225,000 addresses had purchased >1.4 million ETH tokens. However, the IOMAP shows us that the strongest support barrier at $3,000 psychological level, wherein >14,500 addresses had purchased ~7 million ETH tokens.
Exchange Netflows For Ethereum A Plus
CryptoQuant CEO shared the above chart and noted that “exchange netflow looks good.” So, it doesn’t seem like ETH is going to go through a major sell-off any-time soon.
This was further noted by Glassnode Founders “Yann & Jan.”
They noted - “Confidence in $ETH still high as coins flow out of exchanges again.”
Glassnode also shared the following chart about the Ethereum supply in smart contracts vs their balances in exchanges.
“#Ethereum supply dynamics tell a compelling story for the future for the protocol. $ETH on exchanges falls to 12.0% of circ. supply, as $ETH in smart contracts rises to 22.8%.”
Ethereum Social Chatter Still On The Rise
“#Ethereum has nearly eclipsed $3,600 within the hour, making yet another #ATH. Patient $ETH holders have enjoyed a +56% price rise the past two weeks, and we've analyzed some yellow flags in our latest insight.”
Uniswap V3 Goes Live On Ethereum
DeFi exchange Uniswap recently announced the launch of v3. In a blog post, the firm said:
We’re thrilled to announce that Uniswap v3 has been deployed to the Ethereum mainnet! All relevant contract addresses can be found here.
Uniswap v3 intends to make the on-network exchange of tokens more capital-efficient. According to reports, the design points in on a capability called concentrated liquidity. Through this, liquidity providers (LPs) can make markets within customized price ranges.
The exchange also said that Uniswap v3 would be deployed later on Optimistic Rollup, a layer-two protocol designed to drive down transaction costs. The Block data shows that Uniswap is the dominant Ethereum-based decentralized exchange, pulling in approximately $51 billion in volume during April.
Source: The Block Crypto Data
Ethereum Price Is Expected To Reach These Levels
As things stand, the Ethereum price will likely drop to the $3,400 support wall. A further break will likely take ETH down all the way to $3,000. A break below $3,000 seems unlikely for now.