Ethereum price turns into a battlefield with bulls trying to push higher
|- Ethereum price is set to complete a three-day-winning streak.
- ETH price sees bulls trying but unable to close above a technical hurdle.
- Once bulls can close above the price cap, the room is open for a possible 20% rally.
Ethereum (ETH) price is attempting to crack above a major moving average that, if it gives way, could open the door to a 20% rally back up to the August highs at $2000, with along the way $1,688 and $1,928 as good handles along the way to book some gains. If bulls can close above the MA by this evening it will give the green light for a jump higher; a close below, however, could trigger a fade lower towards supportive levels as September finally starts to get underway.
ETH sees bulls starting to get impatient
Ethereum price could be on the verge of trading substantially higher as bulls brush price action against the 55-day simple moving Average (SMA). Unfortunately, they have not been successful yet in being able to close above this technical hurdle and the longer it takes to perform that close, the more the patience of bulls will start to fade. That is reflected in the Relative Strength Index (RSI) that is starting to flatline after the nudge higher, meaning that bears and bulls are battling to plant the last flag of the trading week above or below the 55-day SMA before heading into the weekend.
ETH price could thus be in for the prospect of a solid rally next week, if bulls can plant that flag above $1,600. Once above that, the $2,000 marker will come into play and pull price action up quite rapidly, with $1,688 and $1,928 as platforms to catch a breath and some profit. There is also the possibility bulls will want to try and take on the 200-day SMA at $2,148, bearing 34% of gains.
ETH/USD Daily chart
Risk to the downside could come from bulls starting to lose interest. The longer it takes to get that daily close above the 55-day SMA, the fewer bulls will keep their stake in the long ETH position, which is seen in the RSI that is flatlining as more bears come in to defend any further upticks. A fade could trigger bulls to cash in and close their long positions, triggering a sell-off to $1,243.89 as baseline support.
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