Ethereum Price Prediction: A double-top or ready to pop?

Summary:

The Ethereum price has reached a critical juncture, at significant resistance, which will dictate whether the bulls or bears are victorious.

The Ethereum price has reached a critical juncture, at significant resistance, which will dictate whether the bulls or bears are victorious. Ethereum (ETH) is trading marginally higher this morning at $3,870 as it continues to do business below the crucial $4,000 level. Furthermore, whilst the almost certain approval of a futures-based ETF has sent Bitcoin (BTC) to within 3% of its all-time high, Ethereum faces a stiffer challenge.

Despite Investment banks JP Morgan and UBS prediction that Ethereum will outperform Bitcoin in the long run, the ETH Token has recently given up ground to BTC. Despite the underperformance vs Bitcoin, Ethereum constitutes to dance against the US Dollar. The Ethereum price has increased by 45% in the last three weeks, from $2,800 to $$3,880 this morning. However, ETH runs into strong overhead resistance as it approaches $4k, which is likely pivotal.

ETH Price Forecast

The daily chart shows the Ethereum price is testing trend line resistance at $3,900. Furthermore, bulls will remember the last time Ethereum attempted to clear $4,000 was at the start of September before it collapsed 35% to $2,650. As a result, if Ethereum fails to punch through trend resistance, a bearish double-top pattern may emerge. Therefore, a close above trend resistance at $3,900 and the September high at $4,030 will be constructive. In that event, bullish momentum should take the price towards the all-time high of around $4,380.However, failure to clear resistance could set the price up for profit-taking.

If the Ethereum price fails to break out on the upside, it will reinforce the confluent resistance. Subsequently, bearish traders will grow in confidence, and sellers may emerge ahead of $4,030. On the plus side, if more shorts are added, it will lead to more buying if the price breaks higher. Nonetheless, if resistance holds, downside targets include the 50-day moving average (DMA) at $3,427, followed by the 100-day at $3,048. On balance, I favour the bullish scenario, although doubts will remain until ETH convincingly clears resistance. On that basis, an informed price prediction is not possible until today’s candle is complete.