Ethereum price still stands a chance to rally to $1,500 for these reasons

Ethereum price failed and was rejected at the 38.2% Fibonacci retracement level.
There is a significant downtick in bearish momentum amidst the recent decline.
Invalidation of an uptrend potential depends on the swing low at $1,006 remaining untagged.

Ethereum price could sweep the lows and then rally higher. An influx of volatility should be expected in the days to come.

Ethereum price is still a knife to catch

What Ethereum price is experiencing could become very volatile in the days to come. On Tuesday, September 27, the bears rejected the smart contract token from entering the $1,400 price. A Fibonacci retracement tool surrounding the sharpest part of the decline since the US CPI announcement on September 13 shows the bearish rejection occurring at the 38.2% retracement level.

Based on Fibonacci and Auction Market theories, a sweep the lows event targeting the September low at $1,110 could occur in the coming days. Still, the shorter bearish scenario does not rule out the possibility that a bounce towards higher FIB targets could also occur.

A 21-day simple moving average remains untagged since the recent decline, which also hovers near the $1,500 pride level.

ETH USDT 3-Hour Chart

Ethereum price currently auctions at $1,276. A significant drop in volume is displayed amidst the recent downtrend, which compounds the idea of a weakening trend. Traders should continue to scout the ETH price in hopes of a potential knife-catch scenario.

Any buy the dip entries should keep the summer swing low at $1,006 as a strong invalidation point. If the bears breach this level, the entire uptrend idea would be void. A rally towards the June 18 swing low at $880 would be the next bearish goal post, resulting in a 32% decline from the current Ethereum price.

In the following video, our analysts deep dive into the price action of Ethereum, analyzing key levels of interest in the market. -FXStreet Team

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.

Join Telegram