- Ethereum price lost 14% of its market value in turmoil on Friday.
- ETH price is on the path to recovery with a bullish break out of the pennant.
- Expect a rally to emerge as tailwinds attribute to new all-time highs.
Ethereum (ETH) looks to be back on track to new highs, following Friday’s speed bump as global markets pushed all risk assets to the downside. Over the weekend, investors reassessed the situation and bought the dip in several cryptocurrencies, including Ethereum. Expect a quick retake of the uptrend, brushing off Friday’s correction, and look for new all-time highs by the end of this week.
Ethereum price will hit $5,000 by the end of this week
Ethereum price saw bulls pushed out of their positions, and their stops runat $4,060. The monthly pivot stopped bears short in their tracks, however, and ETH made no further lows. Instead, investors saw tremendous buy opportunities and began accumulating several cryptocurrencies, rebooting the overall uptrend.
ETH price is now seeing a lift in buy-side momentum with a knee jerk reaction of the Relative Strength Index (RSI) to back above 50. Bulls are currently looking to retest $4,465, a short-term resistance level that once unlocked, opens the door towards $4,646. Expect this level not to give way easily, however, as bears have the advantage of both the historical level and the red descending trend line to set up their defenses.
ETH/USD daily chart
As current tailwinds continue to gather strength and momentum, expect ETH price to push through $4,465 in the coming days. This will trigger bears to take their losses and see buy-side demand pick up even further momentum, resulting in a quick spike towards $5,000.00, and new all-time highs along the way by the end of the week. If bulls do not break $4,465, expect a nosedive down to $3,687. The blue ascending trend line and the significant historical level coincide with each other.
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.