The price of Ethereum has risen by 8% in the last 24 hours to about $2,700, in anticipation of today’s major upgrade. With five Ethereum Improvement Proposals scheduled to be integrated into the blockchain’s code today. EIP-1559 is the most widely discussed of these, with the goal of making Ethereum transaction costs more stable.
Analyst Future Blockchain in a recent analysis suspects there is still a chance for ETH to make a bearish reversal even as network updates. The prediction is based on ETH’s price trajectory in the past.
He says we’ve reached a key weekly resistance level. The ETH/USDT pair recovered above the 21 EMA at the apex of the May/June recovery bounce after the market crash. Now weeks later, ETH Price is back above that signal, as well as playing with the same horizontal level in tandem with the Fibonacci 38.20 mark.
This situation is Deja Vu to the positive reversal that the ether witnessed in May 2018 if we go back to 2017 and the last major bull cycle. Fibonacci 38.20 + horizontal barrier on the weekly timescale after breakout above the 21 EMA.
Hence, if history repeats, we’re in for a massive bearish reversal. Says the analyst.
ETH Price Close above $2920 is crucial!
He goes on to say, although the price looks like it will repeat its previous action, the fundamentals are strong this time. The interest of the buyers is still intact and how this one plays out differently is to be watched out for.
It is evident that London Hardfork is set to propel prices, but it should rally as high as $2920 and make a weekly close above that to validate a bull rally.
The analyst points out that Eth is forming a W pattern which in most cases is a bullish signal for a robust reversal. However, this figure begins at the same level as the end-of-May relief bounce, near the $2,850-$2,900 horizontal resistance.
As a result, the formation of W cannot be considered until the ether breaks and closes above it, which suggests a reversal at the current price ($2,700) will be ineffective.