Ethereum price revealed interesting price actions since last week. Though the leading alt crashed down, ETH appears ready to present impressive upticks this week, moving higher to explore significant price levels.
Ethereum On Recovery Mood
Ethereum lost around 23% within the past month to print a swing low near $2,714. This move saw the alt printing the third swing low and the second swing highs. Moreover, the downswing was critical for Ether to establish an ascending channel.
Meanwhile, plotting a trend line connecting the mentioned swing level forms an ascending channel pattern. The previous times (two) Ether tagged the channel’s lower trend, a 43% upward move emerged. That paints a bullish picture of Ethereum’s current price level.
Thus, market participants can turn optimistic (vigilantly) and begin scooping Ethereum while hoping for price upswings. The parallel channel remains the most substantial reason why ETH will likely reverse to erase acquired losses.
The second is the bullish divergence between the Relative Strength Index’s (RSI) lower low and the price. This formation predicts an upside action for Ethereum and might trigger higher movements for the alternative coin.
Moreover, the FIB tool for ETH’s 43% upward move from January 22 to February 10 shows the anticipated action saturates around the 27% retracement mark at $3,554. Applying the same concept and plot FIB for the second surge between March 7 and April 3 unveils $3,856 as the optimistic target.
Since all these narratives support a bullish result for the alt, Ethereum has a higher probability of climbing towards the $3,856 level before exploring its psychological zone at $4,000.
The drop in the alt’s supply on exchanges within the previous month supports the upside outlook for ETH. The number of tokens on these platforms declined to 14.86 million from 15.24 million in 30 days. That shows investors removing their assets off exchanges as they are confident in ETH price performance.
This indicator matches the predictions from a technical standpoint, adding tailwinds for Ether bulls. Thus, enthusiasts can prepare for an upside move from ETH soon.
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