• Ethereum price has been on an uptrend since the beginning of 2021, but is currently showing signs of a bearish divergence.
• Ethereum is expected to experience a pullback of 15-20% before seeing an upswing beyond $2000.
• If the trading fails to hold at support levels close to $1600, then a significant drop may take place below $1500.
Ethereum Price Analysis
The Ethereum price has experienced significant growth in recent times, with its price rising by more than 30%. Despite this surge, there are some signs of bearish divergence and the asset may soon undergo a minor bearish pullback.
The ETH price is likely to experience a minor pullback before it can see further growth beyond $2000. The current resistance at $1777 may soon be broken and the asset may experience a drop towards lower support levels near $1600. This could provide traders with an opportunity to enter the market and trigger buying pressure that could result in an upswing in prices over time.
With buyers entering the market after the potential pullback, ETH prices are likely to reach beyond $1900 initially before testing the psychological barrier at $2000. While some hindrances may be encountered during this process, if bulls can maintain their grip on the market then an upswing could be expected soon enough.
However, if ETH fails to hold above support levels near $1600 then there is potential for prices to drop significantly below $1500 which would invalidate any bullish predictions made for this asset going forward.
In conclusion, Ethereum appears set for a short-term pullback before it can resume its upward trend past the psychological level of $2000. If traders manage to make use of this opportunity by entering at lower prices, then they can benefit from further upside potential in ETH prices over time