Ethereum Price Prediction: ETH presents buy signal, targeting $2,500
|- Ethereum price was held by the $2,000 support level after a steep correction.
- As long as this demand barrier holds, ETH could rebound to $2,500.
- The Tom DeMark Sequential indicator adds credence to the bullish outlook.
Ethereum price seems primed for a bullish impulse after a particular technical indicator presented a buy signal on the 12-hour chart.
Ethereum price poised to rebound
Ethereum price has been in a downtrend since the beginning of June, shedding nearly 30% in market value. The second-largest cryptocurrency by market capitalization dropped from a high of $2,900 to recently hit a low of $2,040.
Despite the significant losses incurred over the past three weeks, Ethereum price looks primed to rebound. The Tom DeMark (TD) Sequential indicator presented a buy signal on the 12-hour chart after ETH tested the 78.6% Fibonacci retracement level.
The bullish formation developed in the form of a green nine candlestick, which is indicative of a one to four 12-hour candlestick upswing. A spike in buying pressure around the current price levels could see Ethereum price rise toward the 61.8% Fibonacci retracement level at $2,540.
ETH/USDt 12-hour chart
Even though the odds seem to favor the bulls, Ethereum price must remain trading above $2,040 to validate the bullish outlook. Failing to hold above this critical support level might spell trouble for the bulls.
A 12-hour candlestick close below the $2,040 support may result in a retest of May 23 or May 19’s low. These interest areas sit at $1,730 and $1,400, respectively.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.