Ethereum Price Forecast: ETH targets $2,400 before facing next hurdles


  • Ethereum price quickly recovered 18% from a market-wide crash on June 22.
  • The 200-day SMA has acted as significant support for ETH. 
  • Ethereum price action sees multiple obstacles ahead although the downtrend is in retreat. 
  • Recent buy signal has confirmed the asset’s recovery to the upside.

Ethereum price made a lower low on June 22, plunging below the $1,732 mark recorded amid the May market crash. While ETH price action followed the leading cryptocurrency as it faced recent negative news headlines, including China’s ban on digital assets, the second-largest crypto is heading for a swift recovery. 

Ethereum price bounces back from free fall 

Ethereum price fell in tandem with the leading cryptocurrency yesterday and proceeded to record a new low at a level not seen since March at $1,700. 

Ethereum has broken down below the symmetrical triangle pattern on the daily chart that started forming on May 20. While the chart pattern indicates that ETH is indecisive, a break below the lower ascending trend line on June 18 confirmed that it was at risk of heading lower. 

Ethereum price has plunged below the critical demand barrier that extends from $1,939 to $2,143 but has now managed to sustain trading above the 200-day Simple Moving Average (SMA) that currently acts as significant support. 

Further, Ethereum was also saved by a buy signal presented by the Momentum Reversal Indicator (MRI) on the June 22 daily candle, indicating a trend reversal. Adding credence to the bullish thesis is the fact that this was a doji candlestick, giving the impression that ETH is expecting to reverse a period of underperformance.

Currently, Ethereum still has a few resistance levels to reach before overcoming the prevailing bearish trend. 

While ETH has been able to trade above the 200-day SMA, and the lower band of the demand zone, the asset needs to target and trade above the $2,143 resistance level to confirm accelerating interest
 

Ethusdt

ETH/USDT daily chart

Should Ethereum price be able to hold above the demand barrier as support, bullish investors can expect ETH to target the ascending trend line of the symmetrical triangle, generating a 19% rally from the current price, and the 27.2% Fibonacci extension level at $2,422. 

If ETH bulls lift prices higher against the overpowering distribution of the sellers, speculators could expect Ethereum price to tag the 100-day SMA at $2,500 as the next bullish target. 

However, if selling pressure continues to materialize for Ethereum, it could retest the 200-day SMA as support before ETH loses further momentum to revisit the May 23 low if the bears manage to ruin the bullish outlook

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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

SafeMoon Price Prediction: SAFEMOON has one last chance for 65% rally

SafeMoon price experienced a massive sell-off that has pushed it to slice through major support levels, jeopardizing its ability to move higher. Despite this, SAFEMOON currently sits above the last line of defense.

More SafeMoon news

Ripple to keep headquarters in US despite lack of clarity around SEC crypto regulations

While the SEC v. Ripple continues to see no end in sight, the blockchain firm is increasingly moving out of the United States. However, Ripple CEO Brad Garlinghouse stated that the firm is not giving up on the US. SEC Chair Gary Gensler believes that ...

More Ripple news

75% of Ethereum nodes prepared for London hard fork as ETH price surges above $2,700

Roughly 75% of Ethereum nodes are ready for the upcoming upgrade, the London hard fork. The ETH London upgrade is expected to take place on block 12,965,000, scheduled to occur on August 5. Ethereum price managed to slice above $2,700 for the first time since early June. 

More Ethereum news

MATIC Price Prediction: Polygon awaits a trigger that could propel it 68%

MATIC price has stayed lull after July 26 swing high at $1.137. The sideways movement indicates a build-up of pressure, which could lead to a massive move in either direction. A breakdown of the $0.90 demand barrier will invalidate the bullish thesis.

More Polygon news

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP