Ethereum Price Analysis: ETH hovers near all-time highs but risks breakdown to $1,700


  • Ethereum’s uptrend towards $2,000 stalls above $1,800 as decline lingers.
  • A rising wedge pattern and a potential sell signal hint at a possible correction.
  • As revealed by the IOMAP model, lack of formidable resistance means that the breakdown could fail to materialize.

Ethereum has in the last couple of days traded near all-time highs but has made little progress towards the much anticipated all-time highs. The flagship smart contract token is teetering at $1,840 amid a potential retreat.

Ethereum is on the brink of a massive correction

Ether is trading at the apex of a rising wedge pattern suggesting that a breakdown may come into the picture. This technical pattern is bearish and indicates potential trend reversals. If validated, ETH could dive towards the 50 Simple Moving Average (SMA) support on the 4-hour chart. If declines increase the intensity, Ethereum will most likely drop to the 100 SMA close to $1,600.

ETH/USD 4-hour chart

ETH/USD 4-hour chart

The TD Sequential indicator will likely present a sell signal on the 3-day chart in the coming few days. This call to sell will manifest in a green nine candlestick. If it is validated, ETH may drop in one to four daily candles. Hence, it is worth keeping an eye on the 3-day chart to time a potential correction accurately.

ETH/USD 3-day chart

ETH/USD 3-day chart

Looking at the other side of the fence

According to the IOMAP chart, all Ethereum addresses are in profit. Therefore, no defined resistance lies ahead of the pioneer altcoin token. In other words, Ethereum only needs a boost above the all-time high to hit new record highs, perhaps above $2,000.

Ethereum IOMAP model

Ethereum IOMAP model

On the other hand, Ethereum is sitting on an area with immense support, which could be strong enough to sabotage the potential downfall. For example, the most robust buyer congestion zone runs from $1,678 to $1,733. Here, nearly 148,000 addresses had previously bought 8.1 million ETH. It is doubtful that losses will exceed this zone.


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.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Ethereum dips slightly amid Renzo depeg, BlackRock spot ETH ETF amendment

Ethereum dips slightly amid Renzo depeg, BlackRock spot ETH ETF amendment

Ethereum (ETH) suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH (ezETH) crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.

More Ethereum News

Injective price weakness persists despite over 5.9 million INJ tokens burned

Injective price weakness persists despite over 5.9 million INJ tokens burned

Injective (INJ) price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.

More Injective News

US intensifies battle against crypto privacy protocols following crackdown on Samourai Wallet

US intensifies battle against crypto privacy protocols following crackdown on Samourai Wallet

CEO Keonne Rodriguez and CTO William Lonergan of Samourai Wallet were arrested by the US Department of Justice (DoJ) on Wednesday and charged with $100 million in money laundering on a count and illegal money transmitting on another count. This move could see privacy-focused cryptocurrencies take a dip.

More Cryptocurrencies News

Near Protocol Price Prediction: NEAR fulfills targets but a 10% correction may be on the horizon

Near Protocol Price Prediction: NEAR fulfills targets but a 10% correction may be on the horizon

Near Protocol price has completed a 55% mean reversal from the bottom of the market range at $4.27. Amid growing bearish activity, NEAR could drop 10% to the $6.00 psychological level before a potential recovery. A break and close above $7.95 would invalidate the downleg thesis.

More Near Protocol News

Bitcoin: BTC post-halving rally could be partially priced in Premium

Bitcoin: BTC post-halving rally could be partially priced in

Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days? 

Read full analysis

BTC

ETH

XRP