The cryptocurrency market entered April on a bearish note with leading digital asset Bitcoin showcasing a 4% drop in the last 24 hours. The supply pressure spread across the market tumbled the top altcoins like Ethereum which recorded a 5.7% drop. This downturn breaks the support of week-long consolidation, indicating coin holders may witness a prolonged correction.
Also Read: Crypto Price Prediction: BTC Sheds 2%, ADA & DOGE Drop 5% Amid Pre-Halving Uncertainty
ETH Faces Key Support Challenge Amid Emerging Bearish Pattern
Amid the recent market consolidation, the Ethereum price wavered in a narrow range between the horizontal level of $3675 and $3445. The price rejection from both sides indicated a clear dominance from bulls and bears toward the asset.
However, a deeper analysis of the 4-hour time frame chart showcased the price developing a bearish reversal pattern called double top. The chart setup is commonly spotted at the market top, bolstering a notable correction in the near future.
Thus, with an intraday loss of 5.77%, the ETH price gave a bearish breakdown from the neckline support of $3444. Sustaining this breakdown will intensify supply pressure and plunge the altcoin to $3250 or $3057, coinciding with the 38.2% and 50% retracement levels respectively.
Also Read: Skywards Proposes To Add Ethena’s sUSDe To Aave V3 On Ethereum
Ethereum Eyes $4500 Target in April Amid Historical Bullish Trends
Looking at the historical data, Ethereum has shown predominantly positive behavior in April, with high returns in five out of the eight years listed. Notable surges in 2017 (+67.77%), 2018 (+70.29%), and 2020 (+55.04%) highlight this pattern, contributing to an impressive average April return of +23.66%. However, it’s worth noting that there are exceptions, like in 2016 and 2022, when there were significant declines.
Anyhow, if we consider the average return for Ethereum in April, the buyers may drive the asset to a high of $4500 by the end of the month.
Technical Indicator
- BB Indicator: The converging bands of the Bollinger band indicator reflect increasing volatility in this asset.
- Moving Average Convergence Divergence: A bearish crossover state between the MACD(blue) and signal(orange) lines reflects an active correction trend in play.
The post Will Ethereum Price Stay Bullish in April? Historical Data Says Yes appeared first on CoinGape.
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