• Ethereum price has recently dropped from its all-time high of $2,131 to a low of $1,851.
• The decline is attributed to profit-taking after hitting key milestones and the uncertainty surrounding the Federal Reserve.
• Analysts remain bullish on Ethereum’s prospects and forecast a 37% jump to $2,500 in the coming weeks.
Ethereum Price Decline
Ethereum price has recently pulled back from its year-to-date high of $2,131 after reaching a low of $1,851. This decline is mostly attributed to profit-taking following the coin’s crossing of key milestones and uncertainty over the Federal Reserve’s rate hike plans.
Factors Affecting Ethereum Price
The selloff in Ethereum was largely caused by investors taking profits after reaching key levels such as $30,000 for Bitcoin and $2,000 for Ethereum. In addition, there is some uncertainty over the Federal Reserve’s planned rate hikes in May which could also be weighing on prices. Finally, traders may also be responding to news about upgrades such as those related to withdrawing coins from exchanges in Shanghai which could have an effect on prices.
Technical Analysis
On the daily chart, we can see that ETH has been in a strong uptrend since March this year when it started climbing from ~$1,080 up to its current peak of just below $2,100. It has also formed a cup and handle pattern which is usually seen as a bullish sign indicating further upside potential ahead. Moreover, Relative Strength Index (RSI) is below 50 which suggests that there might be more downside pressure before prices start rising again soon. Therefore it looks like ETH might continue declining before bouncing back up again soon.
Ethereum Price Prediction
Analysts are still quite bullish on Ethereum’s prospects despite the recent pullback and expect it to eventually reach new highs in the near future with some predicting a 37% jump up to around $2500 within few weeks time once support levels hold up well enough for buyers stepping into market at better rates than sellers pushing out at slightly lower rates each day until demand rises beyond supply yet again making ETH rise sharply even higher than expected before now if all goes well with overall crypto market sentiment during that period too so far looking good with no major red flags or warnings being noticed yet!
Conclusion
In conclusion, analysts remain positive about Etheruem’s prospects despite its recent pullback due mainly to profit taking following its recent rally above key milestone levels as well as uncertainty over Fed rate hikes decisions due next month but technical analysis suggest there might still be some more downside pressure before prices start recovering again most likely leading towards another surge up towards new all time highs sometime soon although exact timing cannot be predicted accurately right now but overall outlook certainly remains promising enough for long term investors especially those who are already holding onto their positions waiting patiently for that moment when everything starts going even more bullish than ever seen before!
