• Ethereum price higher by as much as 13% this week.
  • New all-time highs will set a clear road map for the $5,000 value area.
  • Look for profit-taking to occur over the weekend if Ethereum becomes overextended.

Ethereum price faced a substantial number of sellers as it near its all-time highs.  A decisive breakout beyond the all-time high is likely to continue as buyers target the psychological $5,000 value area.

Ethereum price halted near all-time highs, buyers cautious as the weekend approaches

Ethereum price attempted to continue its astounding bullish performance by repeating what Bitcoin has already accomplished: new highs. Plenty of the trading day still exists, and buyers may step in to rally Ethereum higher. However, the latter part of the trading day could trigger a bear trap and push Ethereum to new all-time highs.

The 100% Fibonacci expansion of the July 20th low of $1,721 to the September 3rd high of $4,028 is at $5,000, indicating bulls should have a relatively easy path to hitting that value area. Additionally, the 161% Fibonacci expansion from the same swing is near the projected new all-time high target in the $6,300 price zone.

Buyers will want to be cautious as Ethereum price enters Friday and into the weekend. Weekends are notorious for giving back much of the gains in cryptocurrencies, and Ethereum is perfectly positioned to see short-sellers capitalize on that behavior. The daily and weekly Ichimoku charts show current and expanding gaps between their respective candlesticks and the Tenkan-Sen. Within the Ichimoku Kinko Hyo system, gaps between the current close and the Tenkan-Sen do not last long before correcting.

ETH/USD Daily Ichimoku Chart

Further warnings of impending profit taking can be seen in the oscillators. The Relative Strength Index is approaching the first overbought condition (80), while the Composite Index could confirm regular bearish divergence – a warning signal for bulls. Most notably is the position of the Optex Bands, which will almost certainly be in the extreme overbought range on Friday, a likely trigger for some selling pressure.

However, if Ethereum makes new all-time highs, it enters into price discovery mode. That means the path of least resistance is higher, and there is no technical limit to how high Ethereum could go.

Remember: the market can remain irrational longer than you can remain solvent.

 

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Fed’s Powell calls for proper crypto regulations as Bitcoin price shoots beyond $20,000

Fed’s Powell calls for proper crypto regulations as Bitcoin price shoots beyond $20,000

Bitcoin price is exploring highs above $20,000 on Tuesday after holding support at $18,800 for nearly four days. Green sprouts are noticeable across the market, led by Uniswap price’s 16.70% move to $6.60

More Bitcoin News

Ethereum price eyes $1,450 as post-Merge tax problems arise

Ethereum price eyes $1,450 as post-Merge tax problems arise

Ethereum price shows a steady climb over the last twelve hours as a direct consequence of the sudden spike in Bitcoin price, which influences the whole crypto market. 

More Ethereum News

XRP price cools off before preparing for its next 100% rally

XRP price cools off before preparing for its next 100% rally

XRP price shows an interesting development in the lower time frame that hints at a potential retracement. The higher time frame scenario also entertains the possibility of a deeper pullback after its recent explosive move.

More Ripple News

MATIC Price Prediction: These signals are key to catching Polygon’s 20% rally

MATIC Price Prediction: These signals are key to catching Polygon’s 20% rally

MATIC price continues to consolidate around the range low for more than a week and shows no signs of breaking out. Investors should pay close attention and anticipate the bullish resurgence, which could trigger an explosive move.

More Polygon News

Bitcoin makes a bullish comeback amid regulatory tension, but lacks confirmation

Bitcoin makes a bullish comeback amid regulatory tension, but lacks confirmation

Bitcoin price takes the first step to recovery but needs solid confirmation that will arrive after a flip of the $19,539 level into a support floor. After a successful flip, investors could expect a move up to an intermediate hurdle at $20,737.

Read full analysis

BTC

ETH

XRP