The Ethereum Price Analysis: Bearish Outlook for ETH/USD, Bullish for ETH/BTC
The Ethereum (ETH) price has decreased since it deviated above the $1,950 horizontal resistance area in April, which is considered a decisively bearish sign. However, while the ETH/USD chart gives a bearish reading, the opposite is true for the ETH/BTC chart, which shows a bullish pattern from which a breakout could transpire.
- The technical analysis of the weekly time frame gives a mostly bearish reading due to the deviation and decrease below the $1,950 resistance area, indicating a possible significant downward movement.
- If the decrease continues, there is a long-term ascending support line at $1,450, which would result in a 20% decrease.
- The weekly RSI is leaning bullish, suggesting that bulls still have strength on their side, although the indicator is not moving decisively in either direction.
- An ETH whale transferred $74 million into Coinbase over the past two weeks, compounding bearish concerns among Ethereum investors.
On the other hand, the ETH/BTC chart provides a mostly bullish outlook with three main reasons:
- The price has traded inside a descending wedge since September 2022, which is a bullish pattern that often leads to breakouts.
- The price reclaimed the 0.618 Fib retracement support level and bounced at the wedge’s support line, indicating a bullish deviation below the Fib level.
- The weekly RSI has generated bullish divergence, suggesting that the price decrease was not legitimate and often leads to upward movements.
Therefore, the ETH/USD price prediction is bearish while ETH/BTC is bullish. Reclaiming the $1,950 resistance area will make the former bullish and could lead to an increase towards $2,300, while a close below the wedge’s support line will make the latter bearish and could lead to a price drop to ₿0.050.
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