Ethereum price explodes, but upside limited to $3,200

Ethereum price struggle seems to be coming to an end after a flip of the 50-day SMA at $2,791.
Investors can expect ETH to plow through the $2,927 to $3,413 supply zone, but slowdown around 100-day SMA at $3,129.
A lower low below the weekly support level at $2,541 will invalidate the bullish thesis.

Ethereum price follows the big crypto closely, as a result, its price action is tightly wound and stuck between two crucial barriers. Despite the lack of momentum and limited upside, ETH has managed to flip through a vital hurdle and looks ready for more gains.

Ethereum price favors bulls

Ethereum price, like Bitcoin price, is stuck between the weekly supply zone, extending from $2,927 to $3,413, and the weekly support level at $2,413. These barriers have constrained the movement of ETH and therefore its upside potential.

After failing to breach the 50-day Simple Moving Average (SMA) three times over the past month, ETH flipped it on Mach 16. Since then, Ethereum price has also plowed through the said supply zone and is making its way higher.

Going forward, investors can expect the smart contract token to retest the 100-day SMA at $3,129 and, in some cases, hit the $3,200 whole number. However, any move beyond this hurdle seems unlikely.

ETH/USDT 1-day chart

On the other hand, if Ethereum price fails to push through the weekly supply zone, extending from $2,927 to $3,413, it will reveal a weakness among buyers and suggest a potential reversal could occur. A daily candlestick close below the weekly support level at $2,541 will create a lower low and invalidate the bullish thesis for Ethereum price. In this case, ETH bears are likely to drag the coin to the $2,000 psychological barrier or to retest the $1,968 weekly support level.

Share: Cryptos feed

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.