• Ethereum price looks to establish first substantial higher high since all-time high on May 12.
  • Mad Money host Jim Cramer said he is investing in Ethereum after selling nearly all of his BTC holdings.
  • A breakdown of the $1,965 support level will invalidate the bullish thesis and delay the start of a new uptrend.

Etheruem price is trying to find a foothold to kick-start a massive bull rally after weeks of downswings. If the buyers manage to push ETH to set up a new swing high, it will signal the start of a bull rally that could take Ethereum price to levels last seen in mid-June.

Jim Cramer’s take on ETH, BTC 

Ethereum is now the go-to crypto investment asset for Mad Money’s host Jim Cramer. The host reportedly sold nearly all of his BTC holdings due to China’s recent crackdown on Bitcoin mining.

To fill this void, the CNBC host said that he is looking to invest in the smart contract token, ETH.

He explains his preference by saying that,

I like Ethereum because people actually use it much more to be able to buy things.

He further argues that, unlike ETH, BTC struggles with defining its utility, be it a store of value or a currency. He added that the NFT markets taking off during the recent bull run helps Ethereum’s case.

The debate between the top two cryptocurrencies has been ongoing for some time. While Satoshi Nakamoto explained how Bitcoin could be money, the scalability issues have kept it from becoming one.

However, Ethereum has taken a completely different route than the pioneer crypto and has more utility. Despite numerous comparisons, both cryptocurrencies have evolved into much more than they were intended to be over the years.

Ethereum price looks to find a foothold

Ethereum price has not seen a substantial higher high since its all-time high at $4,372 on May 12. The downtrend exacerbated on May 19 and June 21, setting up new lows. 

However, as the markets scramble to recover the losses, Ethereum price has come close to tagging the June 21 peak at $2,280. A decisive 4-hour candlestick close above this level would set up the first higher high since May 12, signaling the start of a new uptrend. 

If this move were to occur, it would signal to sidelined investors to jump on the bandwagon, further amplifying the buying pressure and catapulting ETH higher.

While this optimistic scenario is inevitable, it might occur after the smart contract token finds a stable support level to bounce off of.

Therefore, investors can expect ETH to pull back to $2,045 or $1,965.

A swing high above $2,280 after a minor correction will confirm the start of a new uptrend, pushing ETH to slice through the 50% Fibonacci retracement level at $2,318 and subsequent resistance barriers at $2,552 and, in a highly bullish case, $2,640.

ETH/USDT 4-hour chart

ETH/USDT 4-hour chart

However, if the support level at $2,045 is breached, it will push ETH down to $1,965. A sweep below $1,965 does not immediately threaten the upswing as long as the price manages to climb above it.

On the other hand, if Ethereum price gets rejected at $1,965, it will invalidate the bullish thesis. In such a case, the smart contract token might retest the range low at $1,728.

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: If bulls are back, this is where you can accumulate BTC next

Bitcoin Weekly Forecast: If bulls are back, this is where you can accumulate BTC next

Bitcoin price shows a lack of momentum after an explosive move in the last three weeks. The fourth week has been relatively silent, without a lot of volatile moves.

More Bitcoin News

Ethereum Classic Price Forecast: Do not count on large recovery for ETC in Q1, Q2 of 2023

Ethereum Classic Price Forecast: Do not count on large recovery for ETC in Q1, Q2 of 2023

Ethereum Classic (ETC) saw the headwinds that triggered the massive sell-off of 2022 fade a bit to the background in the first weeks of 2023. That resulted in bulls returning to life after a hibernation of almost five consecutive straight months.

More Ethereum Classic News

Ripple will win the legal battle with US SEC in the Supreme Court: John Deaton

Ripple will win the legal battle with US SEC in the Supreme Court: John Deaton

Ripple, the cross-border remittance giant is likely to win its legal battle against US financial regulator, the Securities and Exchange Commission (SEC) according to crypto proponent John Deaton.

More Ripple News

The real reason why Shiba Inu diamond hands refuse to sell despite 40.6% SHIB price rally

The real reason why Shiba Inu diamond hands refuse to sell despite 40.6% SHIB price rally

Shiba Inu holders who acquired SHIB more than 11 months ago are holding onto their tokens. These holders have refrained from selling their SHIB holdings since December 2021.

More Shiba Inu News

US Dollar Index struggles to defend 102.00 ahead of US PMI, GDP data

US Dollar Index struggles to defend 102.00 ahead of US PMI, GDP data

US Dollar Index (DXY) seesaws near 102.00 as the bulls struggle to defend the first daily gains in three, marked the previous day, during early Tuesday’s inactive trading.

Read full analysis

BTC

ETH

XRP