Ethereum Price Analysis: ETH hovers near all-time highs but risks breakdown to $1,700


  • Ethereum’s uptrend towards $2,000 stalls above $1,800 as decline lingers.
  • A rising wedge pattern and a potential sell signal hint at a possible correction.
  • As revealed by the IOMAP model, lack of formidable resistance means that the breakdown could fail to materialize.

Ethereum has in the last couple of days traded near all-time highs but has made little progress towards the much anticipated all-time highs. The flagship smart contract token is teetering at $1,840 amid a potential retreat.

Ethereum is on the brink of a massive correction

Ether is trading at the apex of a rising wedge pattern suggesting that a breakdown may come into the picture. This technical pattern is bearish and indicates potential trend reversals. If validated, ETH could dive towards the 50 Simple Moving Average (SMA) support on the 4-hour chart. If declines increase the intensity, Ethereum will most likely drop to the 100 SMA close to $1,600.

ETH/USD 4-hour chart

ETH/USD 4-hour chart

The TD Sequential indicator will likely present a sell signal on the 3-day chart in the coming few days. This call to sell will manifest in a green nine candlestick. If it is validated, ETH may drop in one to four daily candles. Hence, it is worth keeping an eye on the 3-day chart to time a potential correction accurately.

ETH/USD 3-day chart

ETH/USD 3-day chart

Looking at the other side of the fence

According to the IOMAP chart, all Ethereum addresses are in profit. Therefore, no defined resistance lies ahead of the pioneer altcoin token. In other words, Ethereum only needs a boost above the all-time high to hit new record highs, perhaps above $2,000.

Ethereum IOMAP model

Ethereum IOMAP model

On the other hand, Ethereum is sitting on an area with immense support, which could be strong enough to sabotage the potential downfall. For example, the most robust buyer congestion zone runs from $1,678 to $1,733. Here, nearly 148,000 addresses had previously bought 8.1 million ETH. It is doubtful that losses will exceed this zone.


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


Recommended Content

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high

Bitcoin and Ethereum are approaching their key support levels, and a sustained close below these marks could lead to further declines. 

More Cryptocurrencies News
TON set to launch synthetic Bitcoin to boost its DeFi solutions

TON set to launch synthetic Bitcoin to boost its DeFi solutions

TON revealed its plan on Thursday to launch a synthetic Bitcoin token on its blockchain, allowing users to trade, stake, and earn yield using BTC. Following the announcement, TON is down over 3%.

More Ton News
Maker Price Forecast: MKR could stage 40% rally

Maker Price Forecast: MKR could stage 40% rally

MakerDAO is up 2% on Thursday and could be set for a 40% rise in the coming weeks if it successfully maintains an extended move above the descending trendline of a falling wedge. On-chain data also supports the bullish outlook after a four-month-long decline.

More MakerDAO News
USDT market cap crosses $120 billion as stablecoins continue their uptrend

USDT market cap crosses $120 billion as stablecoins continue their uptrend

The stablecoin market cap continued its uptrend in October, characterized by USDT reaching a $120 billion market cap, according to a CCData report on Thursday. This indicates that investors are preparing liquidity to fuel more demand.

More USDT News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP