- Ethereum price action set to hold price above $2,800.
- It will be even more vital if ETH bulls can safeguard the area around the monthly pivot and not fade further away from it.
- Although the environment looks bearish, the recovery could be set to continue next week as investors try to shake off the volatile trading week.
Ethereum (ETH) price action came back from the dead at the end of January and has been up roughly 34% since then. Not bad at all, but there is more in the pipeline, as long as bulls can withstand the fade from last week and keep the weekly close above the opening level from around $3,000. Although ETH price is under pressure from a death cross, the weekly close would set the scene for next week to come with bulls being more comfortable going long Ethereum as investors look beyond the past, volatile trading week.
Ethereum bulls in comfortable position for an upbeat trading week to come
With Ethereum price again this week already breaking above the 55-day Simple Moving Average, the bearish cap elements from the 55-day SMA are starting to fade quickly. There is a hole punched in the bearish pressure from the death cross each break above. With the bullish candle this week, the 55-day SMA is showing signs of flattening out already, which would make that if next week is another bullish week with, for example, $3,391 testes or breached, not only bulls will have made 16% of gains, but as well see the 55-day SMA tick up back towards the 200-day SMA.
Should some favourable tailwinds be added as well, with, for example, the US dollar backing off a bit and weakening further going into next week, together with stock markets back on the front foot and back in the green for 2022, expect these tailwinds to spill over into ETH price action and see the high of February broken to the upside around $3,272. With the Relative Strength Index (RSI) flatlining at the moment, there is no real risk of hitting either the oversold or overbought barrier any time soon. So going into next week, some gains are to be on the table for bulls.
ETH/USD weekly chart
Seeing the nervousness, Ukraine remains to keep investors on edge, and although global markets stop trading during a weekend, cryptocurrencies do not. SO expect cryptocurrencies to be the only ones to react to any geopolitical news coming out of Ukraine during the weekend, and should that be negative, expect some imminent drops in price action with ETH back to $2,695. Depending on the severity of the news and headlines, a further drop to $2,200 could make losses mount between 6% to 25% over the weekend.
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
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
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.