- ETH price bounces back from brief fall below $1,000 as Celsius Network announces re-payment start.
- Ethereum price has yet to breach the Elliott Wave trend channel.
- A breach at $366.80 will invalidate the bullish macro count.
UPDATE: Ethereum price is trending slightly higher on Tuesday after closing Monday with a Doji candlestick, indicating the start of a potential consolidation period. ETH bulls seeming have been able to finally stabilize somewhat the price action, which had been totally dominated by bears for the past days, weeks, and months. It is still early to tell if this relief rally, which has been based at the big psychological $1,000 support, has some legs or if it will just turn into an indecision period before bears go back in business. News that Celsius Network has started re-paying some of its debts, sending back $10 million in DAI to Compound Finance, and their open commitment to working with regulators in order to stabilize liquidity and operations could help the entire cryptocurrency market to gain some footing.
Ethereum price lures the everyday investor to implement a dollar-cost average investing strategy. The invalidation level for Ethereum price, however, is still wide and less favorable than Bitcoins'.
Ethereum price will be tough to manage
Ethereum price is in the middle of two complex scenarios which will yield a level of unpredictability for the future smart contract's token. Institutional players have been scalping Ethereum with multi-million dollar positions. Venture capitalist firm Three Arrows Capital swung a 33 million dollar Ethereum position during the 3rd weekend of June. The firm was able to capitalize on an arbitrage imbalance as the market value between Ethereum fell below the staked Ethereum on the Curve DAO's Liquidity pool.
@Mhonkasalo
Ethereum price began a disastrous fall from a high of $1,118 on Friday to $888 by Saturday afternoon as millions of dollars in ETH were witnessed on the blockchain being swapped for STETH on the Curve Dao's network. The shocking market discrepancy was quickly resolved as Institutional and retail investors bought the discounted Ethereum price. ETH price currently trades at $1,108 on the first day of summer.
The technicals are bullish but risky
From a technical standpoint, the bulls have printed a very bullish-looking hammer on the 2-day chart. This classic bullish signal is accompanied by a significant amount of volume, which should yield some upside potential into the $1,400 zone for a $27% increase in value. Still, the 200-Week Simple Moving Average lies just above today's market price at $1,200 and should be viewed as a critical level likely to prompt significant bullish resistance for the Ethereum price to hurdle.
ETH/USDT 2-Day Chart
Unlike Bitcoin's recent price action, the Elliott Wave trend channel has not been breached. Ethereum's technicals suggest a $400 target is on the cards for Ethereum price but could happen as late as 2023 under Elliott Wave's rule of alternation. A complex fourth wave structure will likely ensue (contrasting with the 'simple' structure of the previous corrective wave) for the smart contracts token, bringing considerable market uncertainty.
Long-term Investors aiming to dollar cost average a discounted Ethereum price should be aware of the medial phase in which the smart contract token presents itself. The bullish macro invalidation level is 66% below today's market value at $366.80. If the $366.80 level is breached, expect an Armageddon-style decline to $110, resulting in a 90% decrease from the current 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.