Ethereum Price Forecast: ETH awaits imminent jump to $2,400 if key level cracks
- Ethereum price has formed a cup and handle pattern on the 4-hour chart
- The digital asset is becoming scarcer every day, which should translate into an increase in value.
- About $60 billion worth of ETH is locked away and exchanges are running out of Ethereum.
Ethereum price hit a new all-time high at $2,203 on April 12 but seems to have formed a robust resistance trendline. However, most on-chain metrics show that ETH is bound for a significant leg up.
Ethereum price needs to crack this key resistance level
On the 4-hour chart, Ethereum seems to have formed a cup and handle pattern which as the name indicates, resembles a teacup. The resistance neckline is formed at $2,200, which means that a breakout above this point will drive ETH towards $2,400. A 10% move calculated using the height of the neckline to the bottom of the pattern.
ETH/USD 4-hour chart
Surprisingly, despite Ethereum price hitting new all-time highs, the supply of the coin on exchanges has dropped by 1% since March 28. This indicates that investors are withdrawing their ETH from exchanges to hold even longer.
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ETH Supply on Exchanges
The total value of ETH locked in DeFi protocols peaked at $52.37 billion on April 10 and the value of Ethereum locked in the ETH2 contract reached $8.07 billion which means that a total of $60.44 billion worth of Ethereum are locked away.
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ETH total value locked in DeFi
To invalidate the bullish outlook, bears will need to push the digital asset below the neckline of the handle sitting at $2,080. This would be a notable breakdown capable of driving Ethereum price down to the bottom of the pattern at $1,930.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
