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Ethereum targets $ 2,000 with a correction looming

ETH bulls aim for higher highs, but cause technical problems

The central theses

  • Ethereum prices have soared more than 16% in the past three days after breaking out of a consolidation pattern.
  • While there is still more headroom, the uptrend may be nearing exhaustion.
  • An increase in selling pressure could cause ETH to fall back to $ 1,600 before moving further towards $ 2,000.

Speculation about the upcoming Ethereum upgrade in July is mounting. As market participants become overwhelmingly bullish, the price of ETH could go up before quickly reversing.

Ethereum is returning to previous all-time highs

Is back in the spotlight after a two-week consolidation period. The second largest cryptocurrency by market cap broke out of a symmetrical triangle on March 6, which has since risen by more than 16%.

The height of the y-axis of the triangle suggests that ETH prices could rise another 5.50%. Hence, a further increase in buying pressure could push ETH to hit a target of $ 1,960.

Warning signals are displayed

During the recent upswing apparently of speculation around Ethereum’s “Buyback” updateaiming to restructure fees, investors need to remain cautious.

Tom Demark (TD) sequential indicator suggests that Ethereum could decline after reaching the symmetric triangle target of $ 1,960.

This index will represent a sell-signal on the 12-hour chart of ETH. It could develop as a green nine-candle, indicating a retracement of one to four candles.

It’s worth noting that the TD setup was incredibly accurate for foreseeing local spikes in Ethereum trends. The three sell signals that this indicator has presented since the beginning of the year have all been validated, which led to significant corrections.

Hence, it is imperative to consider the short-term pessimistic forecast before going long.

ETH / USD 720 min chart

Transaction history that nearly 780,000 addresses previously bought over 12 million ETH at an average price of $ 1,600. In the event of a correction, this support hurdle must be held to prevent a steep decline towards USD 1,300.

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