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Ethereum Price Forecast: ETH still favors run-up to $2,600

  • Ethereum price had a solid recovery after the sell-off in major cryptocurrencies. 
  • Although Ethereum could break a bearish trend line, yesterday it was rejected at the monthly pivot.
  • Although Ethereum looks set to dip lower, there is support nearby.

Ethereum price last week broke to the upside and took out a bearish descending trend line. Although ETH got rejected and could not close above the monthly pivot at $2,277.76, it still has some more room to go to the upside.

Ethereum price is set to receive more buyers and push prices higher

After a five-day consecutive winning streak, ETH made a substantial recovery, coming from $1,663.62 and shooting up toward $2,370.65. But this is where it stopped for now. 

Ethereum price could not close above $2,277.76, which aligns with the monthly pivot and with a triple top formation before the aggressive dip lower toward this year's low at $1,663.62.

After such a winning streak, some profit-taking is normal as buyers will have targeted that triple top to take some profit and as an opportunity for sellers to go short. But not far below where we are now, we have a new area that might interest buyers from coming in.

We have the 200-day Simple Moving Average (SMA) at $1,952.65 that has proven its importance in the past. Each time it has been tested before ETH broke either to the upside or the downside in a clean break. The 200-day SMA is well respected.

Next, we have an ascending trend line from the low at $1,663.62 that will be a second reason for buyers to step in and pick up Ethereum at these levels.

ETH/USD daily chart

ETH/USD daily chart

Ethereum is a little bit in no man's land for now, so buyers will undoubtedly be targeting the area to get in for around $1,950. And likewise, sellers will target it to take profit. So the handover will be essential to see who has the upper hand. 

Should the 200-day SMA break to the downside together with the ascending trend line, expect some further downside price action toward the first support at $1,648.14.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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