Ethereum Prediction 2021: After January 2020, most of the cryptos includimg Bitcoin has started to rise in their price and it is maintaining the same. Likewise, the Ethereum price could retrace soon as multiple time frames hint at bulls’ exhaustion. The Ethereum price set up multiple higher highs and higher lows since January 13.
Thereafter the price moves in an ascending order. The latest swing low was created on March 25th, which resulted in a 38 percent upswing just above 2000USD. However, sellers have managed to push at below the parallel channels middle line to where it currently trades at 2083$. This coin faces a crucial decision that could determine its trend for the foreseeable future. If the buyers can manage to sustain above the momentum reversal indicator’s MRI break outlined at 2350$, then Ethereum price could set as $2500 which is all time high.
However, a decisive closed below $2041 will see ETH drop by 13% toward the 50 day simple moving average. This level coincides with the 78.6% Fibonacci retracement level. Supporting the bearish scenario as the weekly chart, which shows the Ethereum price forming higher highs while the Relative Strength Index RSI has created lower highs. Such a set up is known as a bearish divergence and forecasts a correction.
Additionally, the RSI is in the overbought zone, suggesting an overextended rally. The MRI complies with the RSI bearish outlook as it has spawned multiple A, B and C extensions, which indicate an incoming reversal. The number of whales holding one million to 10 million ETH Token seems to significantly influence the Ethereum price. A surge in these investors holding saw the market value of add appreciate and vice versa. Two of these market participants have left this category after the Smart Contracts platform created a new high at $2144 on April 2nd.
This 18 percent reduction in whales paints a bearish outlook for Ethereum. Although this ETH scenario looks grim, a bullish narrative is not unlikely, especially considering the declining ETH balance on exchanges. Ether supply as a percent of total supply held by centralized entities has dropped 4% since hitting the record levels on April 2nd. This shrinkage effectively reduces the selling pressure and suggests that investors are confident in the bullish potential of ETH. A daily candlestick close above the price breakout line at $2350 will trigger buyers to jump on the bandwagon.
In such a case, the Ethereum price could surge 6% to the immediate supply barrier at $2500. Upon breaching this level, the altcoin giant could increase 10% to hit the 141.4% percent Fibonacci extension level at $2765.