The strong Ethereum (ETH) price rally has recently hit a wall. This week, ETH price surged to its all-time high of $2,145 and then erased some of those gains. Yesterday, it dropped to $1,925, which was the lowest level since April 1. Its market cap now stands at $233 billion, according to data compiled by CoinMarketCap.
What happened: Ethereum has been on a strong rally in the past year, helped by low interest rates and the overall interest in digital currencies. ETH has also been helped by the large use-case, especially in the Decentralized Finance (DeFi) industry that has more than $50 billion in total value locked (TVL).
Also, more developers have been building apps on the Ethereum network, which has been beneficial to the network. This year alone, Ethereum price is up by more than 180%, outperforming Bitcoin, whose price has doubled.
Yesterday, Ethereum price dropped as many bulls took profit as the coin found strong resistance at the all-time high. Indeed, in the past, the price of major cryptocurrencies tend to decline after reaching the highest level as investors take profit.
Also, the Ethereum price is falling as more experts call for regulation of the industry. In a statement yesterday, Jamie Dimon of JP Morgan called on regulators to tighten the screw in emerging industries like DeFi.
Ethereum price prediction
The four-hour chart shows that the ETH price found a strong resistance at its all-time high of $2,145. On the four-hour chart, the price has formed what looks like a double-top pattern, which is usually a bearish sign. Today, the currency is attempting to bounce back and is now 5% above the lowest level yesterday.
It is also being supported by the short and longer term moving averages. In my view, I still believe that the Ethereum price will soon rise to $2,500. To do that, bulls will need to clear the upper part of the double-top pattern at $2,145. At the same time, a cross below yesterday’s low of $1,932 will send a signal that there are more bears willing to push it lower.