Sarah Tran
Independent Analyst
- Ethereum price is primed for a 15% climb after ETH consolidates within the price range.
- A slice above the upper boundary of the governing technical pattern could put $3,800 on the radar.
- Should Ethereum price witness its uptrend retreat, there appears to be ample support for ETH above $3,000.
Ethereum price is ready for a 15% bounce as ETH continues to set higher highs and higher lows. The bulls are aiming for a rally toward $3,800 next should it be able to conquer a critical level of resistance.
Ethereum price prepares for 15% upswing
Ethereum price has formed an ascending parallel channel on the 4-hour chart as ETH continues to trend closer to the upper boundary of the chart pattern.
A break above the topside trend line of the governing technical pattern could work in favor of the bulls, opening up the possibility of a rally of 15%.
The first resistance is at $3,352, the 61.8% Fibonacci extension level, then the $3,404, the upper boundary of the parallel channel. Should ETH manage to be able to slice above this level, the measured target of the potential ascent is 11%, reaching $3,800, reaching the 78.6% Fibonacci extension level.
ETH/USDT 4-hour chart
Adding credence to this bullish thesis is the Relative Strength Index (RSI), which suggests that Ethereum price is still not overbought, even as ETH has recorded its August high and could be primed for a higher target.
The first line of defense for Ethereum price is at the middle boundary of the parallel channel, coinciding with the 20 four-hour Simple Moving Average (SMA) at $3,180, then the 50 four-hour SMA at $3,091.
A spike in selling pressure could see Ethereum price drop to retest the lower boundary of the governing technical pattern at $3,037, corresponding to the 50% Fibonacci extension level.
Should Ethereum price witness a trend reversal and invalidate the bullish outlook, ETH could tag the upper boundary of the demand barrier, which starts at $2,850 and extends to $2,722, the 38.2% Fibonacci extension level.
IntoTheBlock’s In/Out of the Money Around Price (IOMAP) metric reveals that the largest cluster In the Money, 215,650 addresses purchased 7.53 million ETH, acts as meaningful support for Ethereum price.
ETH IOMAP
However, the IOMAP suggests that Ethereum price will find sufficient support at $3,177, where 562,140 addresses bought 2.1 million ETH.
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
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.