- Ethereum price managed to slip past the previous highs and set up a new one at $4,875.
- This upswing was met with a minor market crash that pushed ETH as low as $4,457.
- A persistent downswing could knock ETH down to retest the $4,000 level.
Ethereum price has been on a steady uptrend since September 30 but might face the threat of a sharp correction if it fails to hold above crucial barriers.
Ethereum price fumbles
Ethereum price rose 75% from September 30 to set up a new all-time high at $4,849. This move set up seven higher highs and four distinctive higher lows. Connecting these swing points reveals ETH is traversing an ascending parallel channel.
From November 6 to November 9, ETH rose 12% to set up a new high but was immediately followed by another upswing that set a record high at $4,875. This move was followed by an immediate 8.6% flash crash that retested the lower trend line of the channel but has currently stabilized above the $4,609 support floor.
Since this technical formation forecasts a bearish outlook, a daily close below $4,387 will confirm the start of a downtrend. In such a situation, ETH could revisit the $4,000 psychological level after a 13% pullback.
ETH/USDT 6-hour chart
On the other hand, the current pullback will allow the sidelined buyers to step in. Therefore, if the ETH price continues to recover and undoes the losses, it should clear the current all-time high and make a run for the 100% trend-based Fibonacci extension level at $4,954 or the $5,000 psychological level.
This move would invalidate the bearish thesis for Ethereum price and trigger an upswing.
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 is less than 10% away from all-time high as Ethereum ETF approval anticipation brews
Bitcoin trades around $68,000 early on Monday, less than 10% away from its all-time high of $73,777 on Binance. Ethereum ETF anticipation brews among traders and Ether investment products see inflow of over $45 million in the past week.
Ripple lawsuit settlement likely soon, says Brad Garlinghouse, XRP hovers around $0.60
Ripple (XRP) trades around a key psychological level of $0.60, early on Monday. The altcoin recently made headlines for its highest weekly gain of 2024, over 40%. XRP sustained nearly 21% of the gains from the last seven days.
Solana could cross $200 if these three conditions are met
Solana’s total value locked climbs 18% in July to $5.38 billion, as seen on DeFiLlama. Solana sustains over 20% gains in the past seven days, corrects nearly 3% on Monday. Active addresses and new address count in the Solana network have increased throughout July.
ALT, WLD, ENA, ID set for $200 million token unlocks next week
The crypto market is set to experience another wave of token unlocks next week, with Altlayer (ALT), Worldcoin (WLD), Ethena (ENA), and Space ID (ID) set for a combined token unlock worth about $200 million.
Bitcoin: Will BTC continue its bullish momentum?
Bitcoin (BTC) price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166.