Ethereum price bullish breakout on the horizon, are investors ready for $2,000?


  • Ethereum price is not out of the woods a week after implementing the Merge software upgrade.
  • The TD Sequential indicator flaunts a crucial buy signal, but investors wait for more confirmation of the uptrend.
  • Support at $1,200 will determine if Ethereum price will close the gap to $2,000 or revisit levels below $1,000.

Ethereum price is focused on returning positive results on Saturday. The largest smart contracts token has printed three bullish candles in a row to trade at $1,331. Excitement over the Merge event last week is still reverberating across the cryptocurrency market, but it's doing little to flip ETH's technical outlook bullish. The Merge took place on September 15 – ushering in a new dawn for Ethereum on a more energy-efficient proof-of-stake (PoS) consensus.

Is Ethereum price ready for $2,000?

The daily chart's DMI (Directional Movement Index) indicates the gradually declining overhead pressure. Support at $1,200 allowed previously sidelined investors to hop onto the bandwagon ahead of an anticipated move to $2,000. Ethereum price would gain momentum as the –DI (red) crosses above the +DI (blue).

A buy signal from the TD Sequential indicators, which manifested in red nine candlestick, is affirmative of the improving technical picture. Traders may consider buy orders if the low of the sixth and seventh candles close below the low of the eighth and ninth bars.

ETH/USD daily chart

ETH/USD daily chart

Meanwhile, higher buyer congestion is required, preferably at $1,300, to protect the progress made from $1,200. Big movements north will be limited due to the lack of strong demand for the token.

The global economy is expected to continue struggling in the foreseeable future amid efforts to combat rising inflation. Investors, especially institutional, will likely keep off risky asset classes such as crypto until the global economy returns to favorable levels.

Now, eyes are set on the Ethereum price's ability to step above $1,500 – a resistance level reinforced by the 100-day SMA (Simple Moving Average – blue). This move will confirm to investors that ETH has gathered the requisite liquidity to sustain an uptrend. However, Ethereum will only be safe from potential dips under $1,000 if it reclaims the position above $2,000.

It is worth mentioning that Ethereum price clustered between $1,500 and $1,700 for nearly two months (July 18 – September 16) before the most recent flash drop. In other words, the desired move to $2,000 might not be quickly achieved due to the seller congestion in this range. Traders should consider locking in early profits at the 100-day SMA and the hurdle at $1,700 to avoid losing accrued gains as Ethereum price recovers.


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

Bitcoin: Retraces to around $75,000 after hitting new all-time high

Bitcoin: Retraces to around $75,000 after hitting new all-time high

Bitcoin (BTC) edges slightly down on Thursday and trades at around $74,900 after hitting a new all-time high (ATH) of $76,400 on Wednesday, buoyed by the victory of the crypto-friendly candidate Donald Trump in the US presidential election.

More Bitcoin News
Ethereum price jump spurs most significant ETF inflows in six weeks

Ethereum price jump spurs most significant ETF inflows in six weeks

​After a positive momentum in crypto markets following the outcome of the US presidential election, spot Ether exchange-traded funds (ETFs) in the United States saw their highest inflows in six weeks.

More Ethereum News
Top trending meme coins PEPE, BONK, and FLOKI achieve double-digit gains following Trump’s victory

Top trending meme coins PEPE, BONK, and FLOKI achieve double-digit gains following Trump’s victory

The prices of top trending meme coins Pepe (PEPE), Bonk (BONK) and FLOKI (FLOKI) experienced double-digit gains following Trump’s victory on Wednesday. The technical outlook suggests that the three meme coins hover around key levels, and the breakout could push these coins higher.

More Crypto News
SUI hits new all-time high fueled by Trump election win

SUI hits new all-time high fueled by Trump election win

Sui (SUI) edges down on Thursday and trades at around $2.24 after hitting a new all-time high (ATH) of $2.38 earlier in the day, buoyed by the victory of a crypto-friendly candidate, Donald Trump, in the US presidential election.

More SUI 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