- Ethereum price could be expecting a short-term recovery after a 22% decline from the July 7 top.
- ETH awaits a critical confirmation from a technical signal that could add credence to a bullish thesis of a 15% rally.
- Despite the potential of a price reversal, Ethereum is likely to retest crucial support before an impulsive breakout occurs.
Ethereum price has suffered a 22% drop from the July 7 high and is now showing signs of a short-term recovery. A critical warning signal has emerged from a technical indicator, hinting at a turning point.
Ethereum price awaits confirmation of a shift in price action
Ethereum price has been coiling within a symmetrical triangle pattern that started on June 15. ETH recorded lower highs and higher lows, forming the technical pattern that governs the asset’s movements.
ETH is at a crucial turning point, as Ethereum price held onto the lower trend line of the triangle as support, preparing to reverse the period of underperformance.
On the daily chart, Ethereum price presented the warning of a Momentum Reversal Indicator bottom, suggesting that the next candle could reverse the ETH downtrend. However, investors should await the confirmation of the next candle before accelerating interest could be established.
ETH/USDT daily chart
Ethereum price must break above the 61.8% Fibonacci retracement level at $2,054, coinciding with the 200-day Simple Moving Average (SMA) before a rally could be expected.
If ETH moves in favor of the bulls, it could aim to tag the 38.2% Fibonacci retracement level, which corresponds with the 50-day SMA near the topside trend line of the triangle at $2,276, effecting a 15% rally.
A prolonged increase in buying pressure should not void bigger aspirations for ETH, potentially reaching the 100-day SMA at $2,559.
However, speculators should note that given the current market weakness, Ethereum price is likely to see a retest of the lower trend line of the governing chart pattern before an impulsive rally can be expected.
Should ETH bears take control of the market once again, Ethereum price would find its first line of defense at the 78.6% Fibonacci retracement level at $1,896, before a further drop to $1,729 retesting the May 23 low.
Further bearish momentum could push ETH lower into the demand zone that reaches from $1,653 to $1,729.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
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.