Ethereum price has broken through the $2,000 barrier
Ethereum price (ETH) was invented by Vitalik Buterin and is a great blockchain for smart contracts, dapps and even token creations. The image shows a metal coin of Ethereum in front of a price curve.
The Ethereum price broke through the magic $2,000 barrier for the first time since Ethereum’s (ETH) inception this Saturday, 20/02/2021.
The market is more euphoric than it has been for a long time. We are already at the point where many of the top cryptocurrencies are Bitcoin Up showing double-digit percentage growth figures a day. The crypto market is undoubtedly on the move.
The second largest cryptocurrency by market capitalisation has been somewhat lost in this tumult so far. While the headlines about Bitcoin (BTC) and the Bitcoin price itself are overflowing, Ethereum, with its excessively high transaction fees, has taken a back seat.
But now the Ethereum price has managed to clear its personal hurdle in the form of the $2,000 barrier and is currently trying to establish this as a support.
Ethereum price forecast warns to be cautious
While breaking the $2,000 barrier is a reason for ETH holders to pop the corks, at the same time an Ethereum price forecast warns caution. There, the unpopular opinion is that the Ethereum price is currently showing 4 warning signs that make a major correction likely soon.
These reasons include:
- A high funding rate for ETH Perpetuals.
- A steep rise accompanied by a sharp drop in volume.
- A bearish chart pattern in the form of a rising wedge
- Strong signs of bearish divergence in two different indicators
Why am I coming up with such a sentiment killer at the Ethereum 2000 party now?
Simple. If everyone agrees that this is just the beginning, a $100,000 Bitcoin price forecast conservative and the Ethereum price possibly on track to hit $10,000 this year, then this is a clear and strong warning signal. Major corrections at the end of a strong upward rally do not happen after the majority of the community has warned about it, but when everyone agrees that this was just the beginning of the upward rally. In the process, each bull run has its own narrative that makes retail investors cling to that notion.
However, if we take a closer look at the Ethereum price, we see that the current breakout was stopped by the upper trendline of the rising wedge. It also shows that the volume is actually declining continuously. One could also put it casually: It looks like the bulls are running out of breath more and more.