Ethereum (ETH) price broke above a long-term descending resistance line formed since the all-time high.
ETH is the native token of the Ethereum blockchain created by Vitalik Buterin. After Bitcoin (BTC), it is the largest cryptocurrency by market capitalization. ETH price has risen sharply since March 10 (green icon), when it hit a low of $1,368. The increase reclaimed the $1,690 resistance area and led it to a new yearly high at $1,841. Furthermore, it has pulled the RSI out of its bearish divergence trend line (green line).
Both of these are signs of a bullish trend and support the rise until the price closes below the $1,690 horizontal area. If it does, ETH could decline towards the rising support at $1,400.
Ethereum (ETH) Price Supports Long-term Outlook Growth
Since hitting an all-time high of $4,868 in November 2021, ETH price has been falling below a descending resistance line. The decline ended with a June 2022 low at $881. Since then the price has increased.
After diverging below the $1,370 horizontal area twice (red circle), the price reclaimed the area and validated it as support during the week of March 6-13, forming a long lower wick (green icon). ) became
The following week, Ethereum price broke above the descending resistance line mentioned above. At the time of the breakout, the line had been in place for 490 days. Breaks from such long-term formations often result in significant upward momentum. Besides, the weekly RSI broke above the 50 line, another bullish signal.
If the rise continues, the next resistance lies at $1,980 and $2,400, the latter being the 0.382 Fib retracement resistance.
Wave count aligns with bullish reading
Ethereum price wave count also favors the continuation of the rise. While it is uncertain whether the upward move is part of an ABC structure (black) or a five-wave rise (white), both indicate that an upside move is expected towards at least $2,450. This will give a 1:1 ratio of Waves A:C and will align with the fib resistance zone outlined earlier.
Again, the price reaction after the find will be crucial in determining whether the ETH price will head towards a new all-time high or if it will decline.
To conclude, the most likely ETH price forecast is a move towards at least $2,450. However, a close below $1,690 will invalidate this bullish outlook and a drop towards $1,400 is possible.
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