• Ethereum price action continues to respond strongly from recent lows.
  • Price action could develop a nasty bull trap despite a massive bounce from key support structure.
  • Bulls must defend recent gains or face renewed selling pressure.

Ethereum price has undoubtedly made some wild swings this week. Dropping below the $3,000 zone caused some jitter among market participants, but so far, buyers have been very supportive and responsive – but that conviction will need to be maintained.

Ethereum price is at risk of retesting $2,500 if bulls fail to hold above critical support

Ethereum price, yet again, is up against a make-or-break price level. The $3,300 price level is the single most crucial price level to watch. The Volume Point of Control, 38.2% Fibonacci retracement, and the weekly Kijun-Sen share the $3,300 value area. A close above $3,300 is bullish, while a close below is bearish.

If bears can close Ethereum price below the $3,300 level on the weekly chart, then an influx of new short-sellers and weak-handed buyers turned sellers will likely enter and push Ethereum lower. In essence, a very nasty bull trap will have been triggered, which could see Etheruem returning to the $2,500 value area.

ETH/USDT Daily Ichimoku Kinko Hyo chart

However, all participants should remember the current condition of the Composite Index on the weekly chart. It hit lows not seen since September 2019 and created extremely powerful hidden bullish divergence. The combination of the historical Composite Index lows and the hidden bull divergence indicate Ethereum still has much room to run higher.

If bulls close Ethereum price at or above $3,300, the next test is the weekly Tenkan-Sen at $3,900.

 

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

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Faux strength or resurgence of bullish momentum?

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Faux strength or resurgence of bullish momentum?

Bitcoin price shows a resurgence of buying pressure as the eastern markets open fresh to a new week. This development, while bullish, could turn sour if BTC fails to overcome a significant hurdle. Assuming this occurs, the recent surge in Ethereum, Ripple and other altcoins could also quickly come undone.

More Bitcoin News

Dragoma on Polygon suffers rug pull, DMA price declines 99.8%

Dragoma on Polygon suffers rug pull, DMA price declines 99.8%

Dragoma on the Polygon Network was hit by a rug pull, leaving DMA holders in a fix. DMA price declined 99.8% since the incident. MATIC’s climb to its $1 target remained unaffected by the event.

More Polygon News

If Tezos price clears this significant hurdle, XTZ holders are in for a treat

If Tezos price clears this significant hurdle, XTZ holders are in for a treat

Tezos price shows a steady grind toward its forecasted target. This development comes after a successful breakout from a bullish pattern. Investors can decide if they should hop on this train or stay away by looking at how XTZ reacts to an upcoming resistance level.

More Tezos News

Here’s what to do if you missed the recent AVAX price rally

Here’s what to do if you missed the recent AVAX price rally

AVAX price shows no signs of stopping as it bounced off a stable support level on August 2 and triggered a massive run-up. This move seems to have reached an upper limit for now and is likely to pull back a little. 

More Avalanche News

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP