- Ethereum price eyes a recovery rally but needs a catalyst to trigger the run-up.
- Investors can expect ETH to face challenges at the $1,430, $1,550 hurdle.
- A daily candlestick close below $1,280 will invalidate the bullish thesis.
Ethereum price aims to kick-start a bounce, but Bitcoin’s lack of volatility has kept it pinned down. Investors should stay focused on BTC, therefore, so as to spot and jump on the next opportunity to ride the bullish ETH wave.
While the market outlook has been bearish after the Merge update on September 15, Binance announced on September 20 that it had completed the Ethereum proof-of-work (POW) token distribution to its users.
Unlike other exchanges like BitMEX or ByBit, however, Binance is yet to list futures for trading the newly forked token ETHW, which is trading at $6.
Ethereum price awaits a bullish catalyst
Ethereum price seems to be in the process of traversing a descending parallel channel after producing a string of lower lows and lower highs since August 29. The latest swing low formed on September 19 and ended at $1,280.
So far, Ethereum price has recovered roughly 8% since the swing low, but an explosive rally is likely to push ETH higher. The immediate hurdle at $1,550 is the first target for bulls, but overcoming this barrier could extend the run-up to retest the higher time frame resistance level at $1,730.
Although unlikely, ETH could even retest the $2,000 psychological level, which would bring the total gain from 23% to 36% and is likely where the upside will be capped.
ETH/USD 12-hour chart
While things are looking up for Ethereum price, there is a chance a recovery rally will fail to materialize, especially if Bitcoin price ruins the setup. If ETH produces a daily candlestick close below $1,280, it will invalidate the bullish outlook.
This development could potentially crash Ethereum price to the next support level at $1,080.
Note:
The video attached below takes a look at how to approach Ethereum price from an investment as well as a trading standpoint. It also picks out a few ETH-centric altcoins that could rally in the next bullish phase.
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
Why crypto may see a recovery right before or shortly after Bitcoin halving
Cryptocurrency market is bleeding, with Bitcoin price leading altcoins south in a broader market crash. The elevated risk levels have bulls sitting on their hands, but analysts from Santiment say this bleed may only be cauterized right before or shortly after the halving.
Manta Network price braces for volatility as $44 million worth of MANTA is due to flood markets
Manta Network (MANTA) price was not spared from the broader market crash instigated by a weakness in the Bitcoin (BTC) market. While analysts call a bottoming out in the BTC price, the Web3 modular ecosystem token could suffer further impact.
Bitcoin price uptrend to continue post-halving, Bernstein report says as traders remain in disarray
Bitcoin is dropping amid elevated risk levels in the market. It comes as traders count hours to the much-anticipated halving event. Amid the market lull, experts say we may not see a rally until after the halving.
OMNI post nearly 50% loss after airdrop and exchange listing
Omni network (OMNI) lost nearly 50% of its value on Wednesday after investors dumped the token following its listing on top crypto exchanges. A potential reason for the crash may be due to the wider crypto market slump.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.