Ethereum (ETH/USDT) is bullish on the daily chart as the price rises to a high of $3,388.02. It indicates the sentiments of the bulls. The technical analysis indicates that Ethereum may experience near-term reversals as shown by the recent trades above the upper Bollinger Band.
However, there are other factors also that support this view. As per analysts, Ethereum is going to upgrade to Pectra network soon. It can further boost the ETH price.
Ethereum Faces Potential Resistance After Bollinger Band Breakout
The recent move above the upper Bollinger Band at $3,388.02 shows strong buying increases. At the same time is an overbought sign.
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1-day Ethereum trading chart | Source Tradingview
Furthermore, a breakout has been accompanied by a slight retreat as traders seek to take in profits.
The Relative Strength Index (RSI) is currently at 71.95 placing ETH in the overbought territory which means that ETH’s buying pressure may be declining soon.
Currently, the immediate resistance is located at $ 3,388.02 to give Ethereum a chance to maintain its uptrend, and if backed up by volume, the price may reach $ 4,000 in the future.
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For Ethereum to sustain its uptrend, it needs to break through the immediate resistance at $3,388.02, which could pave the way toward a $4,000 target if supported by strong volume.
If there were to be a retracement, levels such as the $2,743.95 middle Bollinger Band and the 20-day SMA might offer a more suitable range for consolidation. Sustaining the price above this level would continue to support the bulls’ position and would create a base for the next rally.
Pectra Upgrade: A Potential Catalyst for Ethereum’s Growth
AstroCryptoGuru market analyst has forecast the Ethereum to reach $4,000 due to the Pectra upgrade.
https://twitter.com/AstroCryptoGuru/status/1856758964903711171
The Pectra update is anticipated to be one of the biggest updates of Ethereum, with multiple Ethereum Improvement Proposals (EIPs) implemented towards enhancing the network security, scalability, and functionality.
This comprehensive upgrade could enhance Ethereum’s performance and drive increased adoption, contributing to a positive long-term outlook.
The upgrade is expected to include increased security features that should help Ethereum be prepared for potential attacks given the growing network.
Pectra upgrade’s goal is to increase Ethereum’s transaction capacity and possibly reduce gas fees, solving a significant issue within the network.
AstroCryptoGuru opines that the bull case for ETH would be driven by increased demand from the upgrade. This demand might bring in more developers and users, contributing to Ethereum’s intrinsic value and supporting higher price levels.
Analysts Forecast Long-Term Bullish Path to $15,000
Nir7an is another analyst who has particularly high expectations for ETH; at the top of this cycle, he believes that Ethereum could rise to the level of $15000.
ETH/USDT chart | Source X
According to the analysts, ETH chart pattern, combined with anticipated network upgrades and growing institutional interest, sets the stage for a substantial rally in the coming years.