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Ethereum price bulls get some relief as Celsius starts re-payments

  • ETH price bounces back from brief fall below $1,000 as Celsius Network announces re-payment start.
  • Ethereum price has yet to breach the Elliott Wave trend channel.
  • A breach at $366.80 will invalidate the bullish macro count.

UPDATE: Ethereum price is trending slightly higher on Tuesday after closing Monday with a Doji candlestick, indicating the start of a potential consolidation period. ETH bulls seeming have been able to finally stabilize somewhat the price action, which had been totally dominated by bears for the past days, weeks, and months. It is still early to tell if this relief rally, which has been based at the big psychological $1,000 support, has some legs or if it will just turn into an indecision period before bears go back in business. News that Celsius Network has started re-paying some of its debts, sending back $10 million in DAI to Compound Finance, and their open commitment to working with regulators in order to stabilize liquidity and operations could help the entire cryptocurrency market to gain some footing.

Ethereum price lures the everyday investor to implement a dollar-cost average investing strategy. The invalidation level for Ethereum price, however, is still wide and less favorable than Bitcoins'.

Ethereum price will be tough to manage

Ethereum price is in the middle of two complex scenarios which will yield a level of unpredictability for the future smart contract's token. Institutional players have been scalping Ethereum with multi-million dollar positions. Venture capitalist firm Three Arrows Capital swung a 33 million dollar Ethereum position during the 3rd weekend of June. The firm was able to capitalize on an arbitrage imbalance as the market value between Ethereum fell below the staked Ethereum on the Curve DAO's Liquidity pool. 

eth 6/20/22

@Mhonkasalo 

Ethereum price began a disastrous fall from a high of $1,118 on Friday to $888 by Saturday afternoon as millions of dollars in ETH were witnessed on the blockchain being swapped for STETH on the Curve Dao's network. The shocking market discrepancy was quickly resolved as Institutional and retail investors bought the discounted Ethereum price. ETH price currently trades at $1,108 on the first day of summer. 

The technicals are bullish but risky 

From a technical standpoint, the bulls have printed a very bullish-looking hammer on the 2-day chart. This classic bullish signal is accompanied by a significant amount of volume, which should yield some upside potential into the $1,400 zone for a $27% increase in value. Still, the 200-Week Simple Moving Average lies just above today's market price at $1,200 and should be viewed as a critical level likely to prompt significant bullish resistance for the Ethereum price to hurdle.

tm/eth/6/21/22

ETH/USDT 2-Day Chart

Unlike Bitcoin's recent price action, the Elliott Wave trend channel has not been breached. Ethereum's technicals suggest a $400 target is on the cards for Ethereum price but could happen as late as 2023 under Elliott Wave's rule of alternation. A complex fourth wave structure will likely ensue (contrasting with the 'simple' structure of the previous corrective wave) for the smart contracts token, bringing considerable market uncertainty.

Long-term Investors aiming to dollar cost average a discounted Ethereum price should be aware of the medial phase in which the smart contract token presents itself. The bullish macro invalidation level is 66% below today's market value at $366.80. If the $366.80 level is breached, expect an Armageddon-style decline to $110, resulting in a 90% decrease from the current Ethereum price.

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

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