Will ETH Hit $2,000 Before the Shanghai Upgrade on April 12th?


Ethereum’s price has been experiencing a surge lately as it broke above a critical resistance level. However, caution is warranted as some warning signals are being displayed by the RSI.

Technical Analysis:

Daily Chart:

On the daily chart, the price has finally cleared the broken $1800 resistance level after multiple retests. The higher boundary of the large symmetrical triangle has also provided support for the price, pushing it back higher above the $1800 level earlier last week. From a classical price action standpoint, the price could increase towards the $2300 level. However, the RSI indicator should be monitored closely as it approaches the overbought zone, which could lead to a correction or reversal. In case of a decline, the $1800 level could be considered a probable support zone to hold the market.

4-Hour Chart:

On the 4-hour timeframe, it’s evident that the price has finally broken out of the tight consolidation zone between the higher boundary of the symmetrical triangle and the $1850 resistance level. This is considered a bullish signal as the price is making a new higher high. However, the RSI is signaling an overbought state on this timeframe, which could lead to a pullback or even a reversal in the short term. Therefore, the potential targets in the short term if the market corrects are the $1850 level, followed by the $1800 area and the higher trendline of the triangle pattern.

Sentiment Analysis:

Ethereum Taker Buy Sell Ratio (SMA 100)

Ethereum’s price has been showing a bullish trend, making higher highs and lows. However, the futures market is demonstrating a worrying signal that a correction or reversal may be near. This chart displays Ethereum’s Open Interest, a useful metric for futures market sentiment evaluation. High amounts of open interest indicate higher volatility, and conversely, lower open interest is associated with lower volatility and steady price trends.

This metric has spiked significantly over the past couple of days as the price nears the $2,000 mark. Previous instances suggest that significant rises in open interest are typically followed by bearish corrections or entire trend reversals. Hence, a price decline is seeming highly probable as a slight drop could lead to a long liquidation cascade and result in a considerable plunge in price.

In conclusion, while Ethereum’s price has been showing bullish momentum, caution is warranted as the RSI is signaling an overbought state, and the futures market is indicating a possible correction or reversal. Traders should keep a close eye on the $1800 level, the $1850 area, and the higher trendline of the triangle pattern for potential support zones in case of a market correction.


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