- Ethereum price creates a series of equal lows around the $2,764 support floor as buyers prevent sellers from taking over.
- ETH could rally 15% from the $2,876 demand barrier, leading to a breakout from the descending parallel channel, and tag $3,329.
- A breakdown of the $2,764 foothold might trigger a 13% downswing to $2,401.
Ethereum price has been on a steady downtrend since September 7 and shows signs of pausing or reversing itself. However, ETH needs to set up a higher high above the recent swing points to do so.
Ethereum price on an optimistic run-up
Ethereum price has been on a steep corrective trend since September 7, with a lower high at $3,937. During this leg-down, ETH created two distinctive swing highs and three lower lows. Connecting these swing points using trend lines shows the formation of a descending parallel channel.
However, since September 21, Ethereum price seems to have stabilized as buyers stepped up, leading to the formation of equal lows around $2,764.
If the buying process continues, investors can expect ETH to rally higher and attempt a breakout from the channel. However, this attempt will face resistance at $2,995 or the $3,000 psychological level. Clearing this hurdle will open the path for ETH to produce a decisive close above $3,174. If successful, this will indicate a breakout and push the smart contract token to retest a nearby and formidable resistance level at $3,329.
This move from $2,876 to $3,329 would constitute a 15% ascent.
ETH/USDT 6-hour chart
On the contrary, if Ethereum price fails to climb past the $3,000 psychological level, it will denote that the buyers do not have their backs into the upswing and reveal that the selling pressure is overwhelming the bulls.
While this development would delay the uptrend, a breakdown of the $2,764 support floor might potentially trigger a 13% retracement to the 70.5% Fibonacci retracement level at $2,401.
This down move does not invoke a bearish outlook, but it would allow buyers to kick-start a new uptrend.
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.
Recommended Content
Editors’ Picks
Space ID price succumbs to selling pressure with $3.54 million worth of ID tokens unlocked in a cliff event
Space ID (ID) price remains bullish based on the Parabolic SAR price-tracking indicator, which continues to track ID price from below. However, the token is trading at a value that is significantly lower than its rate 24 hours ago, an outcome attributed to its scheduled token unlocks event.
Quant price maintains steady multi-month downtrend but 60% of QNT holders remain above water
Quant (QNT) price is trading with a bearish bias, a steady state that has prevailed for the most part of the year. Despite the downtrend, the majority of QNT token holders remain above water, sitting on unrealized profit.
Optimism receives backlash after decision to split 116 million OP tokens for treasury management
Optimism network recently announced the sale of 116 million OP tokens valued at around $162.4 million in a private sale to seven purchasers for treasury management. While the transaction was not expected to impact OP price, it has provoked backlash from onlookers.
Binance unintentionally causes Ethereum gas fees to soar 1,900% as hundreds of inactive wallets move ETH
With many transfers happening within a thin timeframe, Ethereum gas fees soared 1,900%, moving from 15 to around 300 Gwei. The same was reflected in simple Peer-to-Peer (P2P) transactions, which soared from the conventional 40 cents to around $10, data from Dune analytics shows.
Bitcoin: BTC contemplates crash in September
Bitcoin price remains unfazed by the US CPI announcement on September 13 and continues to move in a range. The weekly chart, however, shows a potential short-term recovery rally that could set the stage for a steep correction.