There is a positive trend in the Ethereum (ETH) cryptocurrency market, but the asset is in the overbought zone. Therefore, as a result of the correction, the coin should fall in price to $ 1650 by April 8.
The dynamics of Ethereum rate change went beyond the upper line of the contracting triangle on March 31. ETH/USD added 10% in price during the day, but then fell to $ 1,900 (Bitstamp data). The nearest support zone runs along the upper line of the pattern and is now at $ 1,860. It looks like the value of the asset will fall to $ 1,860 during the next session. If this obstacle survives, then the price will go up. Otherwise, we should expect a fall in the rate of the coin to the lower line of the triangle ($ 1,650 as of April 8).
ETH started pumping on March 25th. Over the week, the cryptocurrency has risen in price by 28%, and the market was in a state of overbought. The current situation resembles the pattern worked out in early February. On the four-hour chart, the Market Cipher indicator gave a sell signal, but Ethereum continued to pump after a minor correction. The second peak exceeded the previous one, but the price of the coin fell sharply by 15%. If we draw an analogy, then we can assume that the coin will fall in price to $ 1,650.
Trader Theo compared the current dynamics of the ETH exchange rate with the market situation at the beginning of January 2018. In his opinion, the fractal indicates an impending dump, as a result of which the coin will lose 95% in value.
The fluctuations in the value of Ethereum are similar in many ways, but they do not coincide in terms of time frame and amplitude. In the month since reaching its January peak in 2018, the value of the coin has plummeted by almost 60%. This year, the price has declined by only 37% and a month after the downtrend occurred, it was 7% below its historic high. Moreover, in March, the Bitcoin (BTC) rate renewed its all-time high, while in 2018 the price of the virtual currency was rapidly falling.
The fact that ETH has broken through the contracting triangle that began to form on February 20 suggests a continuation of the upward trend in the medium term. Apparently, the market is now at the stage of consolidation. An upgrade of the EIP-1559 blockchain is planned for July. If the network upgrade is successful, then the developers will be able to fix the problem associated with high transaction fees. In this case, the popularity of the blockchain will grow, which can ultimately lead to a powerful bull run.
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