- Ethereum price attempted to form a higher high above the July 26 swing high at $2,433 but failed.
- This failure reveals that ETH was overbought and due for a retracement down to $2,174 or $2,018.
- While a pullback seems likely, market participants should note that a breakdown of $2,018 will invalidate the bullish thesis.
Ethereum price is experiencing a lack of bullish momentum after trying to scale new highs without a pullback.
Therefore, the exhaustion of the buying pressure could lead to a minor retracement that maintains the bullish outlook.
Ethereum price falls short
Ethereum price rose roughly 42% from July 20 to July 26 to set up a higher high at $2,433 as it followed in the flagship cryptocurrency’s footsteps. As BTC created a second higher high on July 28, the ETH bulls gave it a shot but failed, indicating that the buyers are weak.
Instead, Ethereum price only created a lower high, revealing that a pullback is likely.
Considering how BTC is also due for a retracement, the correlation reveals that ETH will promptly follow suit.
The first level target for the bulls is $2,271. However, a breach of the said level might lead to the formation of a double bottom at the $2,018 support or the higher low above it. Either way, this development is bullish for Ethereum price.
Assuming the best-case scenario, Ethereum price will retrace to $2,174. Here or $2,018 are two places where investors can expect a reversal in the trend to bullish.
The $2,460 and $2,640 are two crucial levels market participants need to watch out for in addition to $2,897.
ETH/USDT 4-hour chart
While things are working out for Ethereum price, things could go awry quickly if the bearish momentum increases to a point where it forms a lower low below the July 27 swing low at $2,172,.
A move below this or a lower low will notify a shift in trend.However, if ETH breaks the $2,018 demand barrier, it will invalidate the bullish thesis and open the possibility of a move to $1,850.
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
Ethereum has lost its “ultra” sound money status, faces key rectangle resistance hurdle
Ethereum is up 0.5% on Thursday following a recent analysis showing that the top altcoin lost its "ultra" sound money narrative. Meanwhile, ETH ETFs recorded net inflows for the first time after nine days of consecutive outflows.
Solana bears dominate market as SunPump has potentially led to less demand for SOL
Solana is down 2.5% on Thursday following bearish signals across its funding rate and total fees captured. SOL's weak performance could also be linked to the declining traction seen in its meme coin generation platform Pump.fun.
AI tokens see narrow gains as Wall Street banks raise price targets on NVDA
AI tokens NEAR, ICP, RENDER and TAO briefly traded in the green on Thursday following Wall Street banks' positivity toward Nvidia's earnings report. While a correction followed, these tokens could rally if NVDA meets expectations.
XRP back above $0.57 even as Ripple traders take $8 million in profits
Ripple (XRP) traders have consistently taken profits on their holdings in the last two weeks, per Santiment data. Once again, traders have grabbed $8.36 million in profit so far on Thursday. Typically, profit-taking negatively influences the asset as it increases the selling pressure.
Bitcoin: Will BTC continue its ongoing decline?
Bitcoin (BTC) trades above $59,000 on Friday, but it has lost 7.5% this week so far after being rejected around the daily resistance of $65,000. The decline is supported by lower demand from the US spot Bitcoin ETFs, which registered a net outflow of $103.8 million, falling Bitcoin's Coinbase Premium Index, and a spike in Network Realized Profit/Loss. However, some investors seem to be taking the chance to buy BTC amid this price dip, as shown by the Exchange Netflow data.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.