fxs_header_sponsor_anchor

Ethereum price to revisit $3,200 as ETH bulls clear a critical hurdle

  • Ethereum price moved past the 50-day SMA at $2,853, indicating the uptick in buying pressure.
  • A successful retest of the 50-day SMA will seal the breakout and forecast a move to $3,200.
  • A twelve-hour candlestick close below $2,558 will create a lower low and invalidate the bullish thesis for ETH.

Ethereum price action has been stuck between two major barriers since January 24. The recent uptrend allowed ETH to push through a vital resistance barrier, signaling the bulls’ intentions to move higher.

Ethereum price to revisit stiff barriers

Ethereum price set a supply zone, extending from $3,188 to $3,393 on January 15, before retracing 36% to the weekly support level at $2,324. A bounce off the weekly foothold led to a full recovery that retested the supply zone, but the momentum was lacking, leading to a rejection. 

After retesting the weekly support barrier at $2,324 for the second time, ETH is making another attempt to revisit the $3,200 hurdle. So far, Ethereum price has sliced through the 50-day Simple Moving Average (SMA) at $2,853 and is currently retesting it to signify a successful breakout.

A bounce off this barrier is likely, and investors can expect the resulting rally to retest the supply zone’s lower limit at $3,188. In a highly bullish case, ETH could make a run for the upper limit at $3,393, which roughly coincides with the 100-day SMA.

ETH/USDT 12-hour chart

While things are looking up for Ethereum price, a breakdown of the 50-day SMA will indicate an increased sell-side pressure. This move needs to recover and set a higher low to sustain the optimistic outlook.

If the buyers fail to do so, resulting in a twelve-hour candlestick close below $2,567, it will create a lower low and invalidate the bullish thesis for Ethereum price.

 

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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.