Ethereum Price Prediction: Taking A Breather

Ethereum has been on an absolute rampage in recent weeks going absolutely parabolic and storming to new highs. Ethereum managed to record an ATH price of $4196 which is absolutely outstanding. The crypto market has decided to take a little breather today and subsequently so has Ethereum, with Bitcoin seeing a slight dip in its prices. This helps us remember that even when Ethereum looks like it's going down its own path, Bitcoin is still the leader of the market and so whatever Bitcoin does, altcoins must follow. 

Where are we now?

From my recent Ethereum price prediction, we can see Ethereum actually met our price target of $1450 and now seems to be acting as a very important key psychological resistance. The ascending triangle had broken out upwards and as we said the price target region would be between $4k-$4.3k. Ethereum since has had a minor retracement which brings up something interesting. Using the previous support line of the ascending triangle, we can see that Ethereum had very strong support on this upwards trending line. This could prove to be useful for further retracements in the near future. 

H&S Possibly Forming

The head & shoulders chart pattern is a formation that typically occurs when the price of an asset has peaked/hit a local top. On the 4H time frame, we could potentially be seeing a H&S pattern forming.

Using the Fibonacci retracement levels, we can see if a head and shoulders pattern does form, the neckline of $3850 seems to perfectly coincide with the Fib level, therefore this would be the support level Ethereum would need to break for it to break downwards. Using two different price measurements from the $3850 to the close price and the wick, we can see the pattern would bring us to a potential price target region of between $3550 to $3450 which seem to once again almost perfectly coincide with potential Fibonacci retracement levels. These levels were also previous support levels in the ascending triangle. 

Perhaps a Bullish Divergence?

Another possibility is that this current dip does not test the neckline at all and instead rebound from the current level.

We can see here on the current four-hourly candle that there could potentially be a rebound off the $3900 support which is also near the fib level. If momentum makes a local bottom lower than the previous one, and Ethereum makes a new higher low, which would mean the next four-hour candle would have to be green, then we could see a hidden bullish divergence and therefore suggesting that the uptrend will continue.

Could we go even higher?

At the moment, no clear chart patterns have formed for me to make a decisive conclusion as to where we could be heading in the near short term. In this case, the ETHBTC chart could help us.

We can see that Ethereum still has a lot of upside left for it to capture in its valuation against Bitcoin. Using this graph, The $5000 mark is still up for grabs in May as a 0.085 BTC valuation of Ethereum Ethereum would have us at around $4500-$5000 using the current range of Bitcoin's valuation. However, it is clear to see, previous all-time highs have not yet been met for Ethereum and the absolute top suggests Ethereum could still double in its valuation versus Bitcoin.

The Bitcoin dominance chart can also be a very useful chart to analyse and see whether altcoins are faring better in recent weeks. We can see here that Bitcoin's dominance has been in freefall since the turn of the new year and has fallen through multiple support levels. There is now only one support area left and that is the 35%-40% region which suggests Bitcoin still has some way to go before seeing a possible reversal in its trend. This paints a very bullish picture for altcoins in general and as such, Ethereum will be largely benefiting from this.

The logarithmic regression rainbow of Ethereum shows us that we are currently in between Band 5 and 6. This suggests that the next big level of resistance that Ethereum will face will currently be at the $5,280 level, with that being subject to change of course. So that is the region that is worth considering as the medium-term price target.

Therefore, once again, on the macro scale, I remain bullish in the overall crypto market and of course, Ethereum. It's not done yet, but it wouldn't be the worst thing that happened if Ethereum took a bit of a breather in the near term. As always, the longer we stay in the bull market, the higher the potential top is.