- Ethereum price is set to close out the week with solid gains.
- ETH price is at risk of a bull trap as price action slip below a crucial technical cap.
- Expect to see a possible drop should the market turn negative and dollar strength kicks in again.
Ethereum (ETH) price has been trading quite strong in a very nervous week where traders were thrown left and right, being up one day in the European session and the next day losing everything at the end of the US closing bell. Bulls could still eke out solid gains for the week, with a lot of cash being burned in the process. However, a slight fade pushed price action below the important price cap, which could be enough to trigger a bull trap and see price action collapse next week.
ETH price set to collapse next week
Ethereum price still has some hours to go if it wants to add more gains before this week finally closes its doors. With the gains, that is as far as the good news goes as another big issue is at hand. That issue is the bull trap looming as bulls cannot eke out that weekly gain above the 55-day Simple Moving Average (SMA) at $1,600.
ETH price is thus at risk of being run down into the ground on the back of that bull trap. If the bull trap falls in line with a negative trading week in overall markets next week, added with more dollar strength, expect the floor at $1,404 not to hold and break down. Plenty of free room opens up until the first support becomes available at $1,011, the low of July.
ETH/USD Weekly chart
Although that bull trap could be there, it can easily be dismantled should global markets positively start the new trading week. Look for equities storming out of the gates with multiple gains across the board and in several trading sessions from Asia to the US. Bulls would quickly jump above that $1,600 level and eke out further gains by Friday towards roughly $1,928 and be back at the high of August.
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
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.