Ethereum Price has been climbing steadily over the past 5 days going from a low of $154.48 to a high of $174.4 today. Ethereum is currently trading at $172 as the bulls are pausing for a bit before trying to break the high of $179.32.
The bulls are comfortably trading above both EMAs on the daily chart but the RSI (Relative Strength Index) is inching closer to the overextended zone.
Ethereum Price Short Term Forecast: Bullish
The short-term is definitely bullish for ETH as both the daily and 4-hour charts are in uptrends. Ethereum price has been a bit stagnant on the hourly chart though.
The 4-hour chart has set a clear bull flag at this point and the burden of proof is on the bears to show some strength. The bears would need to break below $157 in order to change the 4-hour trend.
The bulls are looking at $174.45 as the nearest resistance on the 4-hour chart and then the high of $179.32 on the daily.
The hourly chart looks a bit choppy and indecisive with pretty long wicks. Similarly, the 2-hour chart is showing some long upper wicks but nothing too concerning for the bulls.
Ethereum Price Long Term Forecast: Neutral
The long-term for Ethereum is not looking as good. The weekly chart is really positive for ETH as the bulls were able to break above a 5-month parallel descending channel, however, they haven’t changed the downtrend yet.
They also have been struggling to stay above the 26-period EMA as they were rejected in the last 2 weeks. Currently, Ethereum price is above the 26-EMA but will only count if the bulls can close the week above it.
The monthly chart is in a downtrend but the bulls can set an Equilibrium pattern. This pattern occurs when an asset sets lower highs and higher lows.
Bulls need to confirm a higher low at $116.25 by changing the weekly trend. If they can confirm this higher low, they will confirm a monthly equilibrium pattern.
The equilibrium pattern does not help either party, however, it is better than a downtrend.
Will Ethereum Updates Help The Digital Asset?
Ethereum has been undergoing a series of updates and hard forks intended to change the current Proof of Work protocol for a Proof of Stake one.
The last few updates have been quite positive but had no impact on ETH’s price. According to Vitalik Buterin, creator of Ethereum, once Ethereum 2.0 is implemented, transaction confirmation time will go down to 3-6 seconds in comparison to minutes.
The shift towards Proof of Stake will, however, take longer. In fact, many critics have doubted that Ethereum 2.0 could even be possible but the roadmap is already out.
Perhaps when the Proof of Stake protocol is fully ready, Ethereum will experience a bull run although, analysts have their doubts as the upgrade might be already priced in.
