- Ethereum price has been in a strong bullish trend in the past few weeks.
- It has formed a small double-top pattern on the 4H chart.
Ethereum (ETH) price retreated slightly on Wednesday morning even as positive signs about the network emerged. It is trading at $2,930, which is slightly below this week’s high of $3,052. It is still about 27% above the lowest level in February this year.
Ethereum winning the race
Ethereum is one of the most important blockchain networks in the world. Some analysts and close-watchers even believe that it is more important than Bitcoin. Besides, the network is used to build thousands of applications in the industry.
Ethereum has been under pressure in the past few months as the number of projects seeking to dethrone it has jumped. These platforms have better features since they were built after developers identified the vulnerability of Ethereum. They include Solana, Avalanche, Terra, Kadena, and Elrond.
However, despite the challenge, Ethereum maintains a strong market share in all leading industries like Non-Fungible Token (NFT), Decentralized Finance (DeFi), and the metaverse.
Now, it seems like the network is also gaining regulator acceptance. In the past few weeks, central banks in Australia, Malaysia, Singapore, and South Africa have given their approvals for the use of Ethereum blockchain.
Another catalyst for ETH prices is the ongoing upgrade to the network. The process will see the network move from being a proof-of-work to a proof-of-stake. It will also include concepts of sharding that were initially introduced by Zilliqa.
Sharding is a process that improves the speeds of the network by cutting the size of blocks into smaller pieces. It has also been used by networks like Elrond and Near Protocol.
In the past few weeks, Ethereum developers have pushed the new version to a testnet, meaning that the merge will happen in the coming months.
Therefore, more developers will choose Ethereum as their default platform of choice instead of the new platforms like Avalanche and Near.
Ethereum price prediction
The four-hour chart shows that something unique happened this week. After spending a lot of time in consolidation, ETH price managed to move above the upper side of the triangle pattern. This is usually seen as a bullish sign. The current weakness is also a positive thing since the pair is forming what looks a break and retest pattern.
Ethereum price is still above the 25-day moving average while the Relative Strength Index (RSI) and the MACD have pointed downwards. However, it seems like it has formed a small double-top pattern.
Therefore, the coin will likely continue moving lower for a while and then resume the bullish trend. The key target to watch will be the YTD high of $3250.
