Yerevan(CoinChapter.com) — Ethereum (ETH) price will possibly hit $3,200, according to Jebb McAfee, a cryptocurrency technical analyst and the host of a popular crypto-focused Youtube channel Crypto Jebb.
ETH was trading at $2,766 during the New York trading session on Thursday, an all-time high for the flagship cryptocurrency. Mr. McAfee noted that the second-largest cryptocurrency has every potential to continue its uptrend at least for the next 14 days, insomuch that it reaches $3,200.
Mr. McAfee noted Ethereum inside a rising trading channel, as seen on the 1h chart below. The analyst pinpointed the rising level of resistance (the red upper margin of the channel) and the rising level of support (the bottom blue margin). He also stated that as ETH is trading against the resistance, it could either bullish, break the resistance margin, or reject it back until it hits the support line at approximately $2,300.
The Youtuber offered three reasons to back his Ethereum price prediction.
Reason 1: Ascending EMA-20
Ethereum is trading above the 20-day Exponential Moving Average (EMA) line. That suggests a “strong bullish rally” in cards, as the cryptocurrency Youtuber stated. The 1D chart below shows the direction of the 20-day EMA indicator towards the upside, providing much-needed historically-verified support to Ethereum’s bullish bias.
Reason 2: Bullish MACD Cross
“There’s a bullish MACD cross in play,” suggested the blockchain enthusiast. The crossover between the MACD line (blue) and the 9-day EMA line(orange) is visible at the bottom of the chart. Mr. McAfee then analyzed five separate occasions of MACD bullish cross from the past, with each occurrence sending the prices upward.
Pinpointing the bullish MACD cross with a vertical red line, he indicates a 37% rally in the price for ETH to reach the estimated $3,200 target. In the past give crossover cases, the analyst pointed out, the average growth was 40-50%. So the current bullish MACD cross somewhat fits the pattern.
Reason 3: Ethereum Bull Flag
Mr. McAfee stated that the current ascending trading channel “constitutes a bull flag” that started on March 25. These flags are predictors of the token’s future direction, and in this case, Ethereum is facing a bull flag pointing upward. By extrapolating the flag pole, the crypto analyst then indicated that it pushes right up to the $3,200 margin. This was the starting point of his initial estimation.
More Ethereum Supporters
Nick Spanos, the founder of Zap.org, also made a similar prediction earlier this month. He estimated the ETH price at $3,000, as he stated in an interview with CoinChaper.com.
Ethereum is on the verge of upcoming upgrades. The transition from proof-of-work to a proof-of-stake algorithm, promises to transform the blockchain. Mr. Spanos believes the upgrades will possibly also cut the ETH token supply, which will lead to an increase in value.
Petr Kozyakov, co-founder and CEO at the global payment network Mercuryo, also told CoinChapter that he sees the upcoming network upgrades as one of the major bullish backstops for Ethereum prices. Excerpts:
“Ethereum beating its own record to a new ATH of $2,646 is more of a collective push from the market bulls. After the market has been overwhelmed with a massive correction for the better part of last week, investors are aggregating the future potentials of the Ethereum network to take a position today.
“From the Berlin Upgrade to the upcoming EIP 1559 upgrade and ETH 2.0, buyers do not want to pass off the opportunity to be a part of a new full-blown rally to highly ambitious price levels as fueled by these and more factors. At this pace, a ride to $3,000 in the short term and $5,000 in the long term is imminent.”
Mr. McAfee’s 3 reasons for Ethereum’s bullish rally ahead coincide with other similar opinions on the market today. Should his prediction pan out, ETH will hit $3,200 in early May.