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Ethereum Price Forecast: Cryptos scramble for support, but can ETH revisit $1,730?

  • Ethereum price is awaiting a breakout from $1,571 to trigger a quick run-up.
  • If successful, investors can expect ETH to revisit $1,730 and $1,820. 
  • A daily candlestick close below the $1,420 level will invalidate the bullish thesis.

Ethereum price has been struggling to move higher, and part of it can be attributed to the movement on Bitcoin price. The other part is because ETH has liquidity to collect to the downside before triggering a run-up. 

Hence, investors can expect ETH to move to the downside before a recovery rally begins.

Ethereum price waits for the right time to bounce

Ethereum price has produced lower highs and lower lows since setting up a local top at $2,034. The most recent swing low was formed at $1,420, which also coincides with the previous weekly low. 

Investors can wait for ETH to sweep this low at $1,420 and collect the sell-stop liquidity before inducing a bullish momentum. Bitcoin price also seems to be waiting to collect liquidity resting below the equal lows formed at roughly $19,500.

Hence, Ethereum price will likely follow the big crypto’s lead and sweep $1,420. However, after this liquidity run has been completed, investors can expect ETH to trigger another rally.

A confirmation of this move will occur after Etheruem price produces a higher high above $1,619. In such a case, a revisit of the range high at $1,722 will be followed by a retest of the resistance level at $1,730.

In a highly bullish case, ETH could potentially extend this move to $1,820, bringing the total run-up from 22% to 28%.

ETHUSD 4-hour chart

ETHUSD 4-hour chart

On the other hand, if Ethereum price produces a daily candlestick close below the range low at $1,420 and fails to recover quickly, it will produce a lower low and invalidate the bullish thesis. This development could further lead to a correction that knocks ETH down to $1,280.

Note: 

In the video attached below, we discuss, in depth, the potential for a recovery rally that could propel ETH anywhere between $1,730 to $2,000. 

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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