- Ethereum could retest support at $3,018..
- Prices are getting squeezed both ways.
- A rally to $3,600 is yet possible.
Ethereum (ETH) is consolidating in its price action. Price is getting squeezed in from both sides by buyers and sellers. The highs are getting lower, and the lows are getting higher. A breakout looks imminent, and it will be critical to see if ETH can run up again toward the higher boundary at $3,391.
Since the rally upwards on August 7, ETH is stuck in a band between $3,018 and $3,391. And those levels look to hold quite well as we did not have any candle entirely below or above these markers. The reason for a bullish breakout from the symmetrical triangle formation (orange dotted lines) is because price action can hold above the R2 monthly resistance. A bullish outbreak is, therefore, the most logical next step.
A bullish outbreak to come, and that will be the prelude of more upside
Once buyers can reclaim the upper side of the band at $3,391, expect again some resistance from sellers who will try to keep the range trade in play. The opportunity could be unfolding in favor of the buyers. If buyers can push above $3,391, expect stops from short sellers to be run. An attack to $3,600 is more than possible.
The $3,600 level will act as a psychological level, and with $3,687 as the next resistance level marked up on the chart, expect price action to become very choppy around there. Running up toward there still holds 15% of profits for buyers that are stepping in now.
If Ethereum gets a bearish break to the downside, expect a test of the lower band at $3,018. The same scenario where sellers push buyers out of their long positions and a return toward $2,800 and $2,695 is highly likely as these levels will act as the next port of support. It can not get more symmetrical, because sellers would be able to cash in 15% of profit if price action dips toward $2,695. This makes Ethereum look promising both ways.
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
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.