Three reasons why Ethereum’s price could reach $4000 in April

Multiple factors, ranging from a surge in Google trends to dwindling supplies, have hinted at additional upside for Ethereum.

Three market factors indicate that Ethereum’s native token, Ether (ETH), is on track to surpass $4,000 this month.


The number of Google searches for “Ethereum merging” has increased significantly.

Interest in Ethereum’s planned network update, nicknamed “the Merge,” increased significantly in the week ending April 2, according to Google Trends data.

On a 12-month span, searches for the phrase “Ethereum Merge” achieved a flawless Google Trends score of 100, with the majority of traffic coming from the United States, Singapore, Canada, and Australia.

Merge, alternatively dubbed ETH 2.0, refers to the Ethereum network’s complete shift from Proof-of-Work (PoW) to Proof-of-Stake (PoS), a development that had been cited as a major reason for Ether’s rally from $2,500 on March 14 to over $3,500 this week.

The bullish prognosis arises from Merge’s proposal to limit Ether’s issuance pace, perhaps resulting in a supply peak in terms of total ETH in circulation. Each year, the quantity of ETH has increased by 3% due to PoW mining.

The surge in public interest in “Ethereum Merge” indicates that excitement among cryptocurrency investors and traders is building as the Ethereum upgrade approaches. Kiln’s launch last month is the final public testnet before the entire network switches to PoS later this year.

Reserves of exchange-traded ether are at a three-year low.

Simultaneously, the supply of ETH on cryptocurrency exchanges continues to decline.

Notably, net Ether reserves across all exchanges have fallen to their lowest levels since August 2018, implying that traders have been withdrawing ETH in large quantities to retain for the long term or to stake across DeFi liquidity pools.

Additionally, the number of addresses with a balance greater than zero continues to climb, indicating increased acceptance and distribution of ETH.

Technical indicators point to a $4K ETH pricing.

The likelihood of ETH reaching $4,000 in April is also boosted by a well-known technical pattern.

The pattern, dubbed “symmetrical triangle,” typically occurs after a big move to the upside or downside, when the price consolidates sideways inside a range indicated by a descending upper trendline and a rising lower trendline.

In an ideal world, the triangle will resolve in the direction of the previous trend, and is thus referred to as a “continuation pattern.”

However, symmetrical triangular breakouts may not always signal the start of a new trend. For example, technical analysts Robert Edwards and John Magee observe in their book Technical Analysis of Stock Trends that approximately 25% of all symmetrical triangle breakouts result in reversals, i.e., the price does not break in the direction of its prior trend, surprising expectations.

Ethereum’s recent breakout appears to be a reversal, as it bounced to the upside rather than continuing its prior downward trend, as illustrated in the chart below.

The possible breakout target of a symmetrical triangle is computed by measuring the maximum distance between the pattern’s upper and lower trendlines and then multiplying by the pattern’s breakout point.


Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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