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Ethereum price eyes quick 15% rally if it can hold above this support level

  • 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

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.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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