Ethereum Price Prediction: ETH eyes a 40% bull rally

Ethereum price sits on a massive demand barrier, failing to hold above, which could be fatal.
ETH bulls could trigger a massive upswing if a higher high at $1,945 is formed.
A decisive daily candlestick close below $1,700 could kickstart another downtrend to $1,542.

Ethereum price shows signs of reduced volatility as it hugs a demand barrier closely. This level could bring about massive gains or trigger a steep correction.

Ethereum price primed for a massive move

On the 1-day chart, Ethereum price has been trudging close to a support level at $1,744, coinciding with the 78.6% Fibonacci retracement level.

A daily candlestick close above $1,945 will create a higher high, which might be interpreted as optimistic by investors. Therefore, a spike in buying pressure here could propel Ethereum price by 30% to $2,500, a new all-time high for the smart contracts platform token.

However, investors need to pay close attention to the previous all-time high at $2,041, as it could potentially deter this upswing.

Adding credence to the bullish outlook is the confluence of support from the Fibonacci extension and the 50 one-day moving average (MA).

ETH/USDT 1-day chart

Further, IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model also shows nearly 700 addresses holding about 2.45 million ETH here. Hence, any short-term selling pressure might be absorbed by investors in this area.

Ethereum IOMAP chart

Regardless of the bullish outlook, investors need to note that a stiff resistance harboring 730 “Out of the Money” addresses that hold roughly 1.71 million Ethereum is present at $1,826.

Hence, a rejection at this level leading to a solid daily candlestick close below $1,700 could trigger a 10% correction to $1,542.

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.