Ethereum Price Forecast – Descending Triangle Pattern Extends Support!
ETH/USD closed at 1809.64 after placing a high of 1848.88 and a low of 1735.42. Ethereum rose on Friday session over the combination of positive news. The main news that got the attention of many investors was the comments from a senior research analyst at Messari, who predicted that Ethereum could eventually overtake Bitcoin as the world’s largest cryptocurrency after the completion of the ETH 2.0 upgrade.
He supported his prediction with several factors, including the network’s underlying economics that will change with the upgrade. The burning mechanism introduced in ETH 2.0 will destroy Ether at a higher rate than it is being supplied. It means the number of Ether in circulation will become less as more tokens will be burnt, making the tokens scarce. Eventually, Ethereum will become the leading cryptocurrency.
This theory by a senior market analyst caught the market’s attention that supported the ETH/USD pair prices on Friday. Furthermore, the popularity of Ethereum was rising day by day as after a Chinese firm Meitu, another company, increased its Ethereum purchases this week. The Grayscale Ethereum Trust added about 10,000 more ETH purchases than the previous 25,000 ETH purchases by the company worth $36.7 million. This also aided in the prices of ETH/USD rising on Friday.
On the flip side, the CEO of Cardano, Charles Hoskinson, now has a verified Twitter account. This came in after he threatened to leave Twitter permanently after many requests to verify his account as it affected his comments. However, after the surge in ADA prices this week, Twitter finally verified Hoskinson’s account. This supported the prices of ADA, the rival currency of ETH, that negatively impacted ETH/USD prices. Furthermore, the Actress Lindsay Lohan launched a new non-fungible token (NFT) on a TRON-based decentralized marketplace. The auction will go live on Saturday. Ethereum platform is a popular option for NFTs and TRON is an alternative marketplace with fewer gas fees.
Daily Technical Levels
Support Resistance
1765.34 1803.45
1747.33 1823.55
1727.23 1841.56
Pivot Point: 1785.44
The ETH/USD pair continues to trade sideways in a narrow trading range of 1,746 – 1,850 level. On the four hourly timeframes, the pair has formed a descending triangle pattern suggesting selling bias. On the lower side, the support holds around 1,746 that marks the double bottom level, whereas the violation of the 1,746 level can extend the selling trend until 1,650 level. Conversely, the breakout of 1,806 level can lead ETH/USD price towards 1,858 level. Good luck!
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