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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto markets prepare for a bullish October

Bitcoin price is experiencing a momentary downswing as it sets up a falling wedge pattern. Similar to the big crypto, Ethereum price is also forming a bullish pattern. However, Ripple seems to be bouncing off a support floor without any technical formations in play.

More Bitcoin News

XRP and XLM in trouble as CBDCs aim to make cross-border remittances cheaper and faster

The outcome of recent Central Bank Digital Currency (CBDC) pilots shows slashed cost and reduced transaction time. Cryptocurrencies currently utilized for making cross-border settlements, Ripple (XRP) and Stellar Lumens (XLM), are likely to face stiff competition from CBDCs. 

More Ripple news

Shiba Inu price stabilizes as SHIB bulls prepare for 20% take-off

Shiba Inu price saw a massive uptrend on September 16 but was soon undone in the next couple of days as it approached a stable support floor. Investors can expect SHIB to launch here, retesting crucial resistance barriers.

More Shiba Inu News

Cardano price eyes 30% breakout if ADA bulls can overcome this strong hurdle

Cardano price is in a suspended state after its recent breakout from the bullish pattern. If ADA finds a launching pad, there is a high chance a new uptrend begins. Interestingly, there is a confluence of support, indicating a bullish outlook.

More Cardano News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP