ETH rises 3% daily, but is $2,000 in sight again? (Ethereum Price Analysis)

ETH rises 3% daily, but is $2,000 in sight again? (Ethereum Price Analysis)

Ethereum recently sent a bullish signal by finding support at the 100-day moving average at $1,791 and seeing a price increase. Furthermore, it has now encountered a crucial resistance level and a breach of this resistance level would likely trigger a further increase.

Technical analysis

From Shayan

The daily chart

Ethereum experienced a period of steady price action around the 100-day moving average at $1,790 before finding support and continuing higher.

However, during the recent consolidation correction phase since mid-April, the price formed a descending wedge pattern (marked in yellow).

Currently, due to its recent increase, the price has reached the top of the wedge at $1.9k and is on the verge of breaking above this critical level.

Ethereum price is currently trading in a tight range between around $1,791 and the static resistance zone of $2,000. A breakout from the wedge is likely to trigger another rally towards the $2,000 resistance zone.

TradingView

The 4 hour chart

If we take a closer look at the 4-hour chart, we can identify three crucial price regions: the static resistance at $2,000, the dynamic resistance of the ascending channel trendline midpoint, and the static support at $1,710.

Based on the current price action, it seems more likely that the price will continue its uptrend towards the $2,000 resistance and attempt a breakout. However, given the current market conditions and the prevailing uncertainty among participants, it is also likely that a consolidation phase will take place between the $2,000 resistance and the $1,710 support area.

TradingView

On-chain analysis

Price fluctuations in the market result from the dynamic interaction of supply and demand forces. Among these forces, demand plays a crucial role and close observation of the behavior of market participants is crucial in assessing the existing demand.

An effective way to gain insights is to analyze the Active Addresses metric. It measures the total number of unique active addresses, including senders and receivers. During the recent consolidation phase, it entered a downtrend, indicating a decline in demand and a period of uncertainty among market participants.

Additionally, the indicator recently hit its low of the year, suggesting that the current level of demand is not enough to signal the start of the next bull run. Therefore, the market needs increased activity to initiate a healthy bullish cycle. This could potentially be achieved if the price successfully breaks the significant resistance area at $2,000.

CryptoQuant

.