The second article about Ethereum and its possibilities

The price of Ethereum (ETH) hit a new yearly high on April 5th. The weekly and daily timeframes are bullish.

The price of Ethereum has been growing at an accelerated pace since March 10. It broke out of the $1,700 area on March 17 and confirmed it as support ten days later. At the same time, the daily RSI rose above the bearish divergence line and settled above the 50 mark. Both can be considered bullish signals that support continued growth.

Additionally, ETH has been trading in a wide ascending parallel channel since June 2022. Its middle line acted as resistance several times (it is marked with a green circle on the chart), which confirms the correctness of the model. On April 4, the price of the asset broke above this line and rose significantly over the next 24 hours. If the upward movement continues, Ethereum may reach the next resistance level around $2400.

The weekly timeframe confirms the possibility of an increase in the price of Ethereum

Technical analysis of the weekly timeframe confirms the bullish forecast. In March 2023, the price of Ethereum broke out of the descending resistance line that has existed since reaching an all-time high. Bounces from such long-term structures often precede significant price increases.

What’s more, the weekly RSI has recently risen above 50. The last time it happened was in April 2020 and preceded a 2800% gain.

However, ETH has yet to break out of the $1,940 horizontal resistance area. If the upside movement continues and the price closes above $1,940, it could head towards the 0.382 and 0.5 Fibonacci resistance levels, which correspond to $2,440 and $3,400.

Thus, the most likely forecast for Ethereum is to fix above the long-term resistance line at $1,940, followed by a rise to $2,440. A close below the middle line of the current channel will cancel the bullish scenario - in this case, ETH could fall to $1,700.

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