Ethereum price maintains bullish momentum as ETH eyes retest of $3,700
- Ethereum price has bounced off the $2,927 to $3,151 daily demand zone showing bullish interest.
- A further uptrend is possible for ETH as it eyes retest of the 2-day supply zone, extending from $3,675 to $3,862.
- A breakdown of the $2,927 barrier will indicate a shift in trend favoring the bears and invalidate the bullish thesis.
Ethereum price shows a bullish intention as it bounces off a crucial support level and approaches a significant hurdle. Breaching the said hurdle will open ETH a path to retest a resistance level in an attempt to set a higher high.
Ethereum price persists its bullishness
Ethereum price bounced off the weekly support level at $3,061 and left behind a daily demand zone, extending from $2,927 to $3,151. So far, ETH has seen a 13.6% surge and is currently hovering around $3,315.
A continuation of its journey up north will allow ETH to retest the 200-day Simple Moving Average (SMA) at $3,464. While this hurdle is crucial and will take a significant amount of buying pressure to overcome, doing so will allow the Ethereum price to stay on its course.
The 2-day supply zone, stretching from $3,675 to $3,862 will be the next hurdle that ETH will retest, bringing the total run-up to 10%.
While there is a chance Ethereum price could stop here and set up a local top, investors should remain open to the idea of a further climb to retest the 50-day SMA at $3,881. In a highly bullish case, Ethereum price could revisit the $4,066 weekly resistance barrier.
ETH/USDT 1-day chart
On the other hand, if Ethereum price fails to pick up momentum and rally higher, there is a chance it could return to retest the daily demand zone, ranging from $2,927 to $3,151.
A daily candlestick close below $2,927 will create a lower low, shifting the odds in the bears’ favor. This development could trigger a 7% crash to the weekly support level at $2,712.
Author
Akash Girimath
FXStreet
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.
