Ethereum Price Holds Steady While Dencun Upgrade Goes Live — ETH Volatility Ahead?

  Key Takeaways

• The Dencun upgrade propels Ethereum towards $5,000.
• Ethereum faces resistance at the $4,522 to $4,646 range.
• Near-term volatility is expected before ETH hits new highs.

Ethereum’s Dencun upgrade, eagerly awaited by many, is part of a series of fundamental developments on Ethereum (ETH). Its price is on the brink of reaching new heights, thanks to its latest technical advancements and the potential approval of a spot Ethereum exchange-traded fund (ETF). 

With this in mind, some analysts have predicted that the ETH price will hit $5,000 at its next stop. However, Ethereum’s journey to the $5,000 mark has hurdles. 

Ethereum Price Facing Strong Resistance

As pointed out by analyst Ali Martinez , there looks like significant resistance in the price range of $4,522 to $4,646. 

This challenge arises because around 600,000 addresses own more than $1.6 million of Ethereum within this price range. 

He derives this conclusion from the In/Out Of Money chart from IntoTheBlock, showing a cluster around the mentioned price. 

In his opinion, despite these obstacles, the path toward Ethereum’s significant price milestone appears clear.

Ethereum (ETH) Price Analysis 

Ethereum surpassed the $4,000 threshold on March 11 and climbed to nearly $4,100. This recent peak, however, could have signified the culmination of its growth. From March 11, it pulled back and is currently trading at around $3,870. 

The daily chart’s Relative Strength Index (RSI) exceeds 86%. This suggests that Ethereum might be overbought, hinting at an impending correction. Despite this, the market’s momentum remains strong, showing no immediate indicators of a trend reversal except some initial signs of struggle. 

We saw it forming an ascending channel whose support is currently being interacted with on a presumed wave 3 from the lower degree five-wave count. Should it break down to the downside, we would receive a signal of the price starting its corrective phase in wave 4. 

This corrective phase will probably be part of a broader adjustment, potentially driving Ethereum’s price below $3,000. Nevertheless, the subsequent upward trend should push Ethereum’s value even higher, potentially achieving a new all-time high above $5,000 later on. 

In all, Ethereum’s price potential remains bullish but some near-term volatility should affect the coin. 

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

About the Author

Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.

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