- Ethereum could reclaim $3.2k to $3.5k in the short term
- This price target is reliant on Ethereum breaking the $3k ceiling
- Ethereum’s 50-day moving average is also acting as a resistance at the $3k price area
- The London Upgrade in July could assist Ethereum in rallying back to $4k
Ethereum (ETH) could reclaim the $3,200 to $3,500 price area in the short term. This is according to an analysis done by the team at Crypterium who also pointed out that the $3k ceiling needed to be broken before Ethereum regained its bullish momentum. They explained Ethereum’s possible short-term price movement as follows.
An important resistance level now is the $2,975 — $3,000 range…In the near future, the price will come to this zone. After fixing inside it, the ETH chart may rise sharply to the range of $3,200 — $3,500.
Ethereum’s 50-day Moving Average is also Acting as a Resistance
The $3k price ceiling for Ethereum also converges with the 50-day moving average (white) that is now acting as resistance as seen in the chart below.
Also from the chart, it can be observed that the daily MACD, MFI and RSI are indicating an ongoing correction for Ethereum in the crypto markets that might abate as we inch closer to the new month of June. A continuation of the pull-back could mean that Ethereum revisits the lower $2k levels, or the local low of $1,888, before the end of this month.
Ethereum’s London Upgrade Could Push ETH towards $4k
To note is that the months of June and July will be a busy time period for Ethereum developers as they finalize the London upgrade that will usher in EIP1559. The latter Ethereum Improvement Proposal is aimed at taming the issue of high gas fees as well as turning ETH into a deflationary asset.
Therefore, chances are, that the events leading up to the London Upgrade will provide enough fuel for Ethereum to rally back towards the $4k leading up to the event.
However, such a bullish possibility for Ethereum is hinged upon a stable Bitcoin without the gut-wrenching volatility that was witnessed this past Wednesday when BTC dropped from $42k to $30k in less than a day.