- Ethereum price is awaiting a breakout from $1,571 to trigger a quick run-up.
- If successful, investors can expect ETH to revisit $1,730 and $1,820.
- A daily candlestick close below the $1,420 level will invalidate the bullish thesis.
Ethereum price has been struggling to move higher, and part of it can be attributed to the movement on Bitcoin price. The other part is because ETH has liquidity to collect to the downside before triggering a run-up.
Hence, investors can expect ETH to move to the downside before a recovery rally begins.
Ethereum price waits for the right time to bounce
Ethereum price has produced lower highs and lower lows since setting up a local top at $2,034. The most recent swing low was formed at $1,420, which also coincides with the previous weekly low.
Investors can wait for ETH to sweep this low at $1,420 and collect the sell-stop liquidity before inducing a bullish momentum. Bitcoin price also seems to be waiting to collect liquidity resting below the equal lows formed at roughly $19,500.
Hence, Ethereum price will likely follow the big crypto’s lead and sweep $1,420. However, after this liquidity run has been completed, investors can expect ETH to trigger another rally.
A confirmation of this move will occur after Etheruem price produces a higher high above $1,619. In such a case, a revisit of the range high at $1,722 will be followed by a retest of the resistance level at $1,730.
In a highly bullish case, ETH could potentially extend this move to $1,820, bringing the total run-up from 22% to 28%.
ETHUSD 4-hour chart
On the other hand, if Ethereum price produces a daily candlestick close below the range low at $1,420 and fails to recover quickly, it will produce a lower low and invalidate the bullish thesis. This development could further lead to a correction that knocks ETH down to $1,280.
Note:
In the video attached below, we discuss, in depth, the potential for a recovery rally that could propel ETH anywhere between $1,730 to $2,000.
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
Crypto today: Bitcoin, Ethereum, XRP tests key support, TRON network non-stablecoin activity hits new highs
Bitcoin, Ethereum, and XRP hover around key support levels after registering a steep correction earlier this week. TRON network’s stablecoin activity hit new highs following the release of SunPump. TRON trades at around $0.1500, almost flat on the day.
Bitcoin Weekly Forecast: $50,000 on the horizon if it breaks below key support level
Bitcoin price tests the key support level at $56,000 on Friday, consolidating over a 1% decline this week. If it drops below this support, a continued downtrend is likely for BTC, as suggested by substantial outflows from US spot Bitcoin ETFs, rising institutional selling, and bearish on-chain indicators.
Vitalik Buterin says all Layer-2 token holdings will be donated to charity, won’t sell for profit
Vitalik Buterin, Ethereum co-founder, has not sold Ether since the altcoin’s ICO in 2018. On-chain transfers by Buterin make headlines as ETH holders keep eyes peeled for selling pressure on the altcoin.
WazirX, PenPie and Bo Shen hackers launder $42.7 million in stolen funds through Tornado Cash
Three different hackers responsible for the exploit of crypto assets worth millions of dollars from crypto exchange WazirX, DeFi protocol Penpie, and Founder of Fenbushi Capital Bo Shen are using Tornado Cash to move part of the stolen funds.
Bitcoin: $50,000 on the horizon if it breaks below key support level
Bitcoin (BTC) price tests the key support level at $56,000 on Friday, consolidating over a 1% decline this week. If it drops below this support, a continued downtrend is likely for BTC, as suggested by substantial outflows from US spot Bitcoin ETFs, rising institutional selling, and bearish on-chain indicators.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.