- Ethereum price has tagged the $2,160 to $2,567 demand zone, twice, indicating a rally to emerge soon.
- A resurgence of bullish momentum will propel ETH by 15% to tag the 50-day SMA at $2,904.
- A four-hour candlestick close below $2,160 will invalidate the bullish thesis.
Ethereum price is stuck between two massive barriers that are squeezing the altcoin into consolidation. The recent retest of the support area suggests that ETH is due for a quick run-up.
Ethereum price to retest crucial hurdle
Ethereum price slid lower due to the recent crash and tagged the $2,160 to $2,567 demand zone. This downswing is a result of the rejection at the daily supply zone, extending from $3,188 and $3,393.
These two areas are significant and are limiting the movement of ETH, resulting in a consolidation due to a lack of volatility in the market. Regardless, on a lower time frame, there is enough room for ETH bulls to attempt a minor uptrend.
Therefore, investors can expect Ethereum price to bounce off the demand zone and trigger a move above the equal highs at $2,762. Clearing this hurdle will open the path for retesting the 50-day Simple Moving Average (SMA) at $2,904.
This climb would represent a 15% ascent and is likely where the upside is capped for Ethereum price. In a highly bullish case, ETH could visit the lower limit of the supply zone at $3,188, bringing the total gain to 24%.
ETH/USDT 4-hour chart
On the other hand, this minor uptrend depends entirely on the directional bias of Bitcoin. Therefore, a quick flash crash in BTC could see Ethereum price following its lead. In such a case, if ETH produces a four-hour candlestick close below $2,160, it will invalidate the bullish thesis.
In this case, investors can expect Ethereum price could revisit the $1,730 support floor.
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
AI crypto coins rally ahead of ChatGPT creator OpenAI plans to announce Google search competitor on Monday
Barely before the hype around NVIDIA stock gain is over, AI crypto tokens have another bullish catalyst coming their way, which could provide more tailwinds to drive the price of the sector’s tokens.
Ethereum needs a bullish trigger, Joseph Lubin blasts the SEC
Ethereum co-founder alleges that the SEC aims to stifle innovation through its enforcement actions against Ethereum-related companies. Grayscale CEO says he's optimistic the SEC would approve its spot ETH ETF application.
Franklin Templeton declares it’s “Base Season” as the Coinbase low-cost L2 sees significant rise in activity
Franklin Templeton, an investment firm with up to $1.46 trillion in assets under management, has declared that “It’s Base Season.” It comes amid growing activity on the low-cost ETH L2 solution.
Binance fined by Canadian financial regulator over AML violations
Canada's financial regulation body, the Financial Transactions and Reports Analysis Centre (FINTRAC), has fined Binance for refusing to abide by the status quo for all foreign monetary bodies in the country, according to a report on May 9.
Bitcoin: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.