Sheldon McIntyre, CMT
Independent Analyst
- Ethereum price shaking free of the February high over the last two weeks.
- Non-fungible-tokens (NFTs) popularity translates into a tonne of potential for ETH investors.
- “Alt-season” puts ETH at the apex of the cryptocurrency market capitalization.
Ethereum price is up for the third consecutive week and crushed the 161.8% Fibonacci retracement of the 2018 bear market at $2,248 today. The outlook remains bullish for ETH, with the next resistance emerging at $2,500.
Ethereum price advance still not commanding heavy buying
Sometimes rallies take time to attract heavy buying, but it bears watching as the rally continues to unfold. The lack of interest will hurt the odds of ETH breaking through significant tactical levels in the days and weeks ahead.
As mentioned above, ETH should close today above the 161.8% extension of the 2018 bear market at $2,248, and it also came close to hitting the 138.2% extension of the February correction at $2,327 on an intra-day basis. The following important target for the advance is the alignment of the 161.8% extension of the February correction at $2,504 and the symmetrical triangle’s measured move target of $2,507.
If heavy buying emerges, speculators should consider the 261.8% extension level of the February correction at $3,253 as a possible price outcome in the coming weeks.
ETH/USD daily chart
In technical analysis circles, it is common to hear that resistance becomes support, and the February high at $2,041 is where the discussion of support begins for ETH. The next layer of support is the 50-day simple moving average (SMA) at $1,800, followed by the 100-day SMA at $1,633.
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.